Refer to the Graphs Shown

Multiple Choice

Refer to the graphs shown. The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient) curve but who still produces the profit-maximizing quantity might earn is best shown by the area:

A) A+ B in graph (1) .
B) A in graph (1) .
C) C + D in graph (2) .
D) C in graph (2) .