The graph shown represents the cost and revenue curves faced by a monopoly. If Q2 units are being produced, the monopolist:
A)is earning negative economic profits.
B)is earning positive economic profits.
C)is earning zero economic profits.
D)may be earning zero accounting profits.

Question

The graph shown represents the cost and revenue curves faced by a monopoly.  If Q2 units are being produced, the monopolist:
A)is earning negative economic profits. 
B)is earning positive economic profits. 
C)is earning zero economic profits. 
D)may be earning zero accounting profits.

Quizplus · Accepted Answer

The Answer of The graph shown represents the cost and revenue curves faced by a monopoly.  If Q2 units are being produced, the monopolist:
A)is earning negative economic profits. 
B)is earning positive economic profits. 
C)is earning zero economic profits. 
D)may be earning zero accounting profits.

The Graph Shown Represents the Cost and Revenue Curves Faced