Refer to the Graph for a Pure Monopoly

Multiple Choice

Refer to the graph for a pure monopoly. Which of the following pricing models would allow the monopolist to earn positive economic profits?

A) profit-maximizing price only
B) both profit-maximizing price and fair-return prices
C) both fair-return price and the socially optimal prices
D) all three: profit-maximizing, fair return, and socially optimal prices