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
-Refer to Figure 11.7. At the profit maximizing level of output, the monopolist will:

A) earn economic profit.
B) earn super-normal profit.
C) charge a price equal to the marginal cost of production.
D) charge a price lower than the price charged by a perfectly competitive firm.
E) zero profit.