For a Monopoly fiRm, the Vertical Distance Between the Demand

question 12

Multiple Choice

For a monopoly firm, the vertical distance between the demand curve and average cost curve _____.

• A) gives the per unit profit at that level of output
• B) gives the total value of the profit earned by the firm
• C) is maximized when the price charged by the firm equals the average fixed cost of producing the last unit
• D) is equal to the vertical distance between the firm's total cost and total revenue curve at