Refer to the Graph, Which Shows the Revenue Curves for a Monopolist

question 21

Multiple Choice

Refer to the graph, which shows the revenue curves for a monopolist. What price should be charged in order to maximize total revenue?

• A)P₁
• B)P₂
• C)P₃
• D)P₄

---

Definitions:

Produce

To create or manufacture goods or services for sale.

Units

Basic quantities or measurements, such as pieces, meters, kilograms, used to specify an amount of something.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of the level of production.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.