The following figure shows the demand curve, the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve of a monopolist.
-Refer to the figure above.If the monopolist is forced by regulation to charge the fair-returns price for the profit-maximizing output it produces,________.
A) it makes a profit of $100
B) it makes a profit of $200
C) it incurs a loss of $100
D) it makes zero profit
Correct Answer:
Verified
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