Figure: Demand, Revenue, and Cost Curves
(Figure: Demand, Revenue, and Cost Curves) Look at the figure Demand, Revenue, and Cost Curves.The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market.If the government regulated the figglenut market by setting a price ceiling of $40, Figglenuts-R-Us might:
A.produce 60 figglenuts to maximize profit.
B.produce 120 figglenuts to maximize profit.
C.shut down in the short run.
D.increase the price to $60.

Question

Figure: Demand, Revenue, and Cost Curves
   (Figure: Demand, Revenue, and Cost Curves) Look at the figure Demand, Revenue, and Cost Curves.The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market.If the government regulated the figglenut market by setting a price ceiling of $40, Figglenuts-R-Us might: 
A.produce 60 figglenuts to maximize profit.
B.produce 120 figglenuts to maximize profit.
C.shut down in the short run.
D.increase the price to $60.

Quizplus · Accepted Answer

The Answer of Figure: Demand, Revenue, and Cost Curves
   (Figure: Demand, Revenue, and Cost Curves) Look at the figure Demand, Revenue, and Cost Curves.The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market.If the government regulated the figglenut market by setting a price ceiling of $40, Figglenuts-R-Us might: 
A.produce 60 figglenuts to maximize profit.
B.produce 120 figglenuts to maximize profit.
C.shut down in the short run.
D.increase the price to $60.