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The Following Figure Shows the Revenue and Cost Curves of a Monopolist.Figure

Question 45

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The following figure shows the revenue and cost curves of a monopolist.Figure 11.3
The following figure shows the revenue and cost curves of a monopolist.Figure 11.3    D: Average Revenue MR: Marginal Revenue ATC: Average Total Cost MC: marginal Cost -Consider the monopolist described in the Figure 11.3. If the firm engages in profit-maximizing behavior, economic profit per unit of output will be: A) 0. B) P<sub>2.</sub> C) P<sub>4</sub> minus P<sub>2.</sub> D) P<sub>5</sub> minus P<sub>4.</sub> E) P<sub>5</sub> minus P<sub>1.</sub> D: Average Revenue
MR: Marginal Revenue
ATC: Average Total Cost
MC: marginal Cost
-Consider the monopolist described in the Figure 11.3. If the firm engages in profit-maximizing behavior, economic profit per unit of output will be:


A) 0.
B) P2.
C) P4 minus P2.
D) P5 minus P4.
E) P5 minus P1.

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