The following figure shows the demand, marginal revenue, and marginal cost curves for a profit maximizing monopolist.
-Refer to Figure .Identify the profit maximizing production level and the profit earned by this monopolist .
A) The monopolist produces OQ and earns a profit equal to the area PQD.
B) The monopolist produces OQ and earns a profit equal to the area OPQ.
C) The monopolist produces OQ' and earns a profit equal to the area OP'D'Q'.
D) The monopolist produces OQ' and earns a profit equal to the area C'P'D'C".
Correct Answer:
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