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Refer to the Above Graph

Question 2

Multiple Choice

Refer to the above graph.Consider a monopolist in short-run equilibrium.This monopolist: A) has total fixed costs equal to area BEFC. B) has total variable costs equal to area 0CFQ. C) earns economic profit equal to area ABED. D) will cease production since its economic profits are negative. Refer to the above graph.Consider a monopolist in short-run equilibrium.This monopolist:


A) has total fixed costs equal to area BEFC.
B) has total variable costs equal to area 0CFQ.
C) earns economic profit equal to area ABED.
D) will cease production since its economic profits are negative.

Correct Answer:

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