The Following Figures Show the Demand and Cost Curves of a Perfectly

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-According to Figure 11.7, which of the following statements is incorrect about the price P₁?

A) The monopolist is maximizing profit at P_1.
B) The price P₁ is not equal to the demand curve or marginal revenue for the perfectly competitive firm.
C) The monopolist is earning normal profit at P_1.
D) The monopolist sells 10,000 units of output at P_{1 .}
E) The perfectly competitive firm produces 10 units of output at P_1.