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The Following Figure Shows the Revenue and Cost Curves of a Monopolist

Question 13

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The following figure shows the revenue and cost curves of a monopolist. Figure 10.3 The following figure shows the revenue and cost curves of a monopolist. Figure 10.3   D: Average Revenue MR: Marginal Revenue ATC: Average Total Cost MC: marginal Cost -Consider the monopolist described in the Figure 10.3.If the firm engages in profit-maximizing behavior,economic profit per unit of output will be: A) 0 B) P<sub>2</sub> C) P<sub>4 </sub>minus P<sub>2</sub> D) P<sub>5 </sub>minus P<sub>4</sub> E) P<sub>5 </sub>minus P<sub>1</sub> D: Average Revenue
MR: Marginal Revenue
ATC: Average Total Cost
MC: marginal Cost
-Consider the monopolist described in the Figure 10.3.If the firm engages in profit-maximizing behavior,economic profit per unit of output will be:


A) 0
B) P2
C) P4 minus P2
D) P5 minus P4
E) P5 minus P1

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