A Pure Monopolist Is Producing an Output Such That ATC

question 232

Multiple Choice

A pure monopolist is producing an output such that ATC = $9, P = $11, MC = $5, MR = $6, and AVC = $4.50. This firm is realizing

• A)an economic loss that could be reduced by producing more output.
• B)an economic loss that could be reduced by producing less output.
• C)an economic profit that could be increased by producing more output.
• D)an economic profit that could be increased by producing less output.