The figure given below depicts the cost and revenue curves facing a profit-maximizing monopolist that does not discriminate among its customers. Given the figure, which of the following is true?
Figure 9.9

A)An output of 50 units is allocatively efficient, but the monopolist is likely to produce 100 units.
B)An output of 50 units is allocatively efficient, but the monopolist is likely to produce 75 units.
C)An output of 75 units is allocatively efficient, but the monopolist is likely to produce 100 units.
D)An output of 100 units is allocatively efficient, but the monopolist is likely to produce 50 units.
E)An output of 100 units is allocatively efficient, but the monopolist is likely to produce 75 units.

Question

The figure given below depicts the cost and revenue curves facing a profit-maximizing monopolist that does not discriminate among its customers. Given the figure, which of the following is true?​ ​
Figure 9.9
​

A)An output of 50 units is allocatively efficient, but the monopolist is likely to produce 100 units. 
B)An output of 50 units is allocatively efficient, but the monopolist is likely to produce 75 units. 
C)An output of 75 units is allocatively efficient, but the monopolist is likely to produce 100 units. 
D)An output of 100 units is allocatively efficient, but the monopolist is likely to produce 50 units. 
E)An output of 100 units is allocatively efficient, but the monopolist is likely to produce 75 units.

Quizplus · Accepted Answer

The Answer of The figure given below depicts the cost and revenue curves facing a profit-maximizing monopolist that does not discriminate among its customers. Given the figure, which of the following is true?​ ​
Figure 9.9
​

A)An output of 50 units is allocatively efficient, but the monopolist is likely to produce 100 units. 
B)An output of 50 units is allocatively efficient, but the monopolist is likely to produce 75 units. 
C)An output of 75 units is allocatively efficient, but the monopolist is likely to produce 100 units. 
D)An output of 100 units is allocatively efficient, but the monopolist is likely to produce 50 units. 
E)An output of 100 units is allocatively efficient, but the monopolist is likely to produce 75 units.

The Figure Given Below Depicts the Cost and Revenue Curves