Figure 15-5 -Refer to Figure 15-5.If the Monopolist Charges Price P* for Charges

Multiple Choice

Figure 15-5

-Refer to Figure 15-5.If the monopolist charges price P* for output Q*, in order to maximize profit or minimize loss in the short run, it should

A) continue to produce because the price is greater than average variable cost.
B) shut down because the price is greater than marginal cost.
C) shut down because the price is less than average total cost.
D) continue to produce because a monopolist always earns a profit.