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) P2.
C) P4 minus P2.
D) P5 minus P4.
E) P5 minus P1.
Correct Answer:
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