Use the Following to Answer Questions

question 269

Multiple Choice

Use the following to answer questions:
Figure: Demand, Revenue, and Cost Curves
-(Figure: Demand, Revenue, and Cost Curves) Look at the 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 profit.
• B) produce 120 figglenuts to maximize profit.
• C) shut down in the long run.
• D) increase the price to $60.