The Figures Given Below Represent the Revenue Curves of a Monopolist.Figure

question 37

Multiple Choice

The figures given below represent the revenue curves of a monopolist.Figure 11.2
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-A monopolist maximizes profit:

• A)by charging the highest possible price on the demand curve.
• B)by charging a price that equals its marginal cost.
• C)by producing a level of output where the average-cost curve intersects the demand curve.
• D)by producing a level of output where marginal revenue equals marginal cost.
• E)by charging a price equal to its average total cost.