Refer to the graph shown. If the monopolist produces at the output level at which price equals marginal cost, it will:
A) maximize profits.
B) earn zero profits.
C) earn positive profits but not maximum profits.
D) incur a loss.

Question

Refer to the graph shown. If the monopolist produces at the output level at which price equals marginal cost, it will: 
A) maximize profits. 
B) earn zero profits. 
C) earn positive profits but not maximum profits. 
D) incur a loss.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If the monopolist produces at the output level at which price equals marginal cost, it will: 
A) maximize profits. 
B) earn zero profits. 
C) earn positive profits but not maximum profits. 
D) incur a loss.

Refer to the Graph Shown