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Suppose a Monopolist Faces the Demand Curve and Cost Curves

Question 2

Multiple Choice

Suppose a monopolist faces the demand curve and cost curves shown below. Suppose a monopolist faces the demand curve and cost curves shown below. FIGURE 10-5 -Refer to Figure 10-5.The average per unit profit earned by this profit-maximizing single-price monopolist is A) P<sub>4</sub> - P<sub>0</sub>. B) P<sub>4</sub> - P<sub>1</sub>. C) P<sub>4</sub> - P<sub>2</sub>. D) P<sub>4</sub> - P<sub>3</sub>. E) P<sub>3</sub> - P<sub>2</sub>. FIGURE 10-5
-Refer to Figure 10-5.The average per unit profit earned by this profit-maximizing single-price monopolist is


A) P4 - P0.
B) P4 - P1.
C) P4 - P2.
D) P4 - P3.
E) P3 - P2.

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