This Graph Shows the Cost and Revenue Curves Faced by a Monopoly

question 105

Multiple Choice

This graph shows the cost and revenue curves faced by a monopoly.
According to the graph shown,if Q2 units are being produced,this monopolist:

• A)is not maximizing profits.
• B)is producing where marginal costs are less than marginal revenue.
• C)is earning negative profits.
• D)should increase production.

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