Figure 10-5 -Refer to Figure 10-5.If the Monopolist Charges Price P* for Charges

question 154

Multiple Choice

Figure 10-5

-Refer to Figure 10-5.If the monopolist charges price P* for output Q*,in order to maximize profit or minimize loss in the short run,it should

• A) continue to produce because the price is greater than average variable cost.
• B) shut down because the price is greater than marginal cost.
• C) shut down because the price is less than average total cost.
• D) continue to produce because a monopolist always earns a profit.

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