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The Figure Below Shows the Demand Curve, Marginal Revenue Curve

Question 82

Multiple Choice

The figure below shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. The figure below shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. At this monopolist's profit-maximizing level of output, it: A) earns an economic profit of $16 per day. B) incurs an economic loss of $16 per day. C) earns an economic profit of $64 per day. D) incurs an economic loss of $64 per day. At this monopolist's profit-maximizing level of output, it:


A) earns an economic profit of $16 per day.
B) incurs an economic loss of $16 per day.
C) earns an economic profit of $64 per day.
D) incurs an economic loss of $64 per day.

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