The Following Figure Shows the Downward Sloping Demand and Marginal

question 60

Multiple Choice

The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P₁.
Figure 12-1
-Refer to Figure 12-1.If the monopolist cannot price discriminate,profit will be equal to:

• A)the area P₃AP₂.
• B)the area P₂AQ₁O.
• C)the area P₂ABP₁.
• D)zero.

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Definitions:

Beginning Inventory

The financial value of stock ready for market at the beginning of a bookkeeping period.

Average Inventory

An estimation of the value of inventory over a certain time period, typically calculated by averaging the inventory levels at the beginning and end of the period.

Ending Inventory

The cumulative value of goods prepared for sale by the end of a bookkeeping period.

Beginning Inventory

The value of all the goods available for sale by a company at the start of an accounting period.