The following figure shows the revenue and cost curves of a monopolist. Figure 24.3
D: Average Revenue
MR: Marginal Revenue
ATC: Average Total Cost
MC: marginal Cost
Consider the monopolist described in the Figure 24.3.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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