The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-According to Figure 11.7, when the monopolist is maximizing profit:
A)its resources are not being used efficiently.
B)its price is higher than that charged by the perfectly competitive firm.
C)its price is equal to the price charged by the perfectly competitive firm.
D)a firm in perfect competition is earning above-normal profit.
E)a firm in perfect competition is incurring a loss.

Question

The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
  D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-According to Figure 11.7, when the monopolist is maximizing profit:
A)its resources are not being used efficiently. 
B)its price is higher than that charged by the perfectly competitive firm. 
C)its price is equal to the price charged by the perfectly competitive firm. 
D)a firm in perfect competition is earning above-normal profit. 
E)a firm in perfect competition is incurring a loss.

Quizplus · Accepted Answer

The Answer of The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
  D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-According to Figure 11.7, when the monopolist is maximizing profit:
A)its resources are not being used efficiently. 
B)its price is higher than that charged by the perfectly competitive firm. 
C)its price is equal to the price charged by the perfectly competitive firm. 
D)a firm in perfect competition is earning above-normal profit. 
E)a firm in perfect competition is incurring a loss.

The Following Figures Show the Demand and Cost Curves of a Perfectly