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Suppose the Figure Below Shows the Demand Curve, Marginal Revenue

Question 93

Multiple Choice

Suppose the figure below shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist. Suppose the figure below shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.   At this monopolist's profit-maximizing level of output, its total revenue equals the area: A) 0HNC. B) 0FJB. C) 0FLE. D) ELJB.  MC = MR at F units of output, and from the demand curve we can see that at that level of output, the monopolist will charge a price of B. Total revenue equals price times quantity. At this monopolist's profit-maximizing level of output, its total revenue equals the area:


A) 0HNC.
B) 0FJB.
C) 0FLE.
D) ELJB.

MC = MR at F units of output, and from the demand curve we can see that at that level of output, the monopolist will charge a price of B. Total revenue equals price times quantity.

Correct Answer:

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