Use the Following to Answer Question

question 134

Multiple Choice

Use the following to answer question:
Figure: Demand,Revenue,and Cost Curves
-(Figure: Demand,Revenue,and Cost Curves) Use Figure: Demand,Revenue,and Cost Curves.Figglenuts-R-Us is a monopolist in the figglenut market.If the government regulated the figglenut market by setting a price ceiling of $40,Figglenuts-R-Us might:

• A)produce 60 figglenuts to maximize profits.
• B)produce 120 figglenuts in the long run to maximize profits.
• C)exit in the long run.
• D)increase the price to $60.