Refer to the graphs shown. The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient)curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A)A+ B in graph (1).
B)A in graph (1).
C)C + D in graph (2).
D)C in graph (2).

Question

Refer to the graphs shown.  The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient)curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A)A+ B in graph (1). 
B)A in graph (1). 
C)C + D in graph (2). 
D)C in graph (2).

Quizplus · Accepted Answer

The Answer of Refer to the graphs shown.  The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient)curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A)A+ B in graph (1). 
B)A in graph (1). 
C)C + D in graph (2). 
D)C in graph (2).

Refer to the Graphs Shown