Refer to the graph shown. If this monopolist charges a price of $8 for its product, it:
A) maximizes profit.
B) incurs losses.
C) earns zero economic profits.
D) can increase profits by increasing output.

Question

Refer to the graph shown. If this monopolist charges a price of $8 for its product, it: 
A) maximizes profit. 
B) incurs losses. 
C) earns zero economic profits. 
D) can increase profits by increasing output.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If this monopolist charges a price of $8 for its product, it: 
A) maximizes profit. 
B) incurs losses. 
C) earns zero economic profits. 
D) can increase profits by increasing output.

Refer to the Graph Shown