Figure 15-3 Figure 15-3 Above Shows the Demand and Cost Curves Facing

question 232

Multiple Choice

Figure 15-3

Figure 15-3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 15-3.What happens to the monopolist represented in the diagram in the long run, if costs and demand stay the same?

• A)It will raise its price at least until it breaks even.
• B)If the cost and demand curves remain the same, it will exit the market.
• C)The government will subsidize the monopoly to enable it to break even.
• D)It will be forced out of business by more efficient producers.