-The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is zero if it produces
A) 0 units of output.
B) 5 or 20 units of output.
C) 15 units of output.
D) none of the above

Question

-The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is zero if it produces
A) 0 units of output. 
B) 5 or 20 units of output. 
C) 15 units of output. 
D) none of the above

Quizplus · Accepted Answer

A monopoly's economic profit is zero when total revenue equals total cost. This occurs at the points where the total revenue and total cost curves intersect, which is at 5 and 20 units of output.

-The Figure Above Shows a Monopoly's Total Revenue and Total