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The Following Figure Shows the Demand Curve, the Marginal Revenue

Question 29

Multiple Choice

The following figure shows the demand curve, the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve of a monopolist.
The following figure shows the demand curve, the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve of a monopolist. -Refer to the figure above.If the monopolist is forced by regulation to charge the fair-returns price for the profit-maximizing output it produces,________. A) it makes a profit of $100 B) it makes a profit of $200 C) it incurs a loss of $100 D) it makes zero profit
-Refer to the figure above.If the monopolist is forced by regulation to charge the fair-returns price for the profit-maximizing output it produces,________.


A) it makes a profit of $100
B) it makes a profit of $200
C) it incurs a loss of $100
D) it makes zero profit

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