Refer to the graph for a monopolist in short-run equilibrium. This monopolist
A)has a loss per unit equal to DE.
B)has total fixed costs equal to area BEFC.
C)earns positive economic profit equal to the area of ABED.
D)will cease production since its economic profits are negative.

Question

Refer to the graph for a monopolist in short-run equilibrium. This monopolist
A)has a loss per unit equal to DE. 
B)has total fixed costs equal to area BEFC. 
C)earns positive economic profit equal to the area of ABED. 
D)will cease production since its economic profits are negative.

Quizplus · Accepted Answer

The Answer of  Refer to the graph for a monopolist in short-run equilibrium. This monopolist
A)has a loss per unit equal to DE. 
B)has total fixed costs equal to area BEFC. 
C)earns positive economic profit equal to the area of ABED. 
D)will cease production since its economic profits are negative.

Refer to the Graph for a Monopolist in Short-Run Equilibrium