The Following Graph Gives Cost and Revenue Data for a Monopolist

question 23

Multiple Choice

The following graph gives cost and revenue data for a monopolist:

-Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its total profit or loss as a result?

• A)$0.
• B)Loss of $5.
• C)Loss of $550.
• D)Profit of $700.
• E)Profit of $950.

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Definitions:

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Options Pricing Model

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