The graph shown represents the cost and revenue curves faced by a monopoly. If 120 units are being produced, the monopolist:
A)could increase profits by decreasing production.
B)is maximizing its profits.
C)is earning negative profits.
D)could increase profits by increasing production.

Question

The graph shown represents the cost and revenue curves faced by a monopoly.  If 120 units are being produced, the monopolist:
A)could increase profits by decreasing production. 
B)is maximizing its profits. 
C)is earning negative profits. 
D)could increase profits by increasing production.

Quizplus · Accepted Answer

The Answer of The graph shown represents the cost and revenue curves faced by a monopoly.  If 120 units are being produced, the monopolist:
A)could increase profits by decreasing production. 
B)is maximizing its profits. 
C)is earning negative profits. 
D)could increase profits by increasing production.

The Graph Shown Represents the Cost and Revenue Curves Faced