Which of the following statements concerning the monopolist with the cost and demand curves shown in the figure below is true?
A)At output B, the firm is minimizing losses in the short run; in the long run it should shut down.
B)At output C, P = MC, and the firm is maximizing profits.
C)At output A, the firm is maximizing profits; however, in the long run the firm should go out of business.
D)At output B, the firm should shut down in the short run.
E)None of the above are true.

Question

Which of the following statements concerning the monopolist with the cost and demand curves shown in the figure below is true? 
A)At output B, the firm is minimizing losses in the short run; in the long run it should shut down. 
B)At output C, P = MC, and the firm is maximizing profits. 
C)At output A, the firm is maximizing profits; however, in the long run the firm should go out of business. 
D)At output B, the firm should shut down in the short run. 
E)None of the above are true.

Quizplus · Accepted Answer

The Answer of Which of the following statements concerning the monopolist with the cost and demand curves shown in the figure below is true? 
A)At output B, the firm is minimizing losses in the short run; in the long run it should shut down. 
B)At output C, P = MC, and the firm is maximizing profits. 
C)At output A, the firm is maximizing profits; however, in the long run the firm should go out of business. 
D)At output B, the firm should shut down in the short run. 
E)None of the above are true.

Which of the Following Statements Concerning the Monopolist with the Cost