The Following Figure Shows the Demand Curve, the Marginal Revenue

question 32

Multiple Choice

The following figure shows the demand curve, the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve of a monopolist.

-Refer to the figure above.When the monopolist is free to set the price,________.

• A) it makes a profit of $150
• B) it incurs a loss of $150
• C) it makes a profit of $300
• D) it incurs a loss of $300