Refer to the graphs shown. The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient) curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A) A+ B in graph (1).
B) A in graph (1).
C) C + D in graph (2).
D) C in graph (2).

Question

Refer to the graphs shown.  The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient) curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A) A+ B in graph (1). 
B) A in graph (1). 
C) C + D in graph (2). 
D) C in graph (2).

Quizplus · Accepted Answer

The Answer of Refer to the graphs shown.  The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient) curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A) A+ B in graph (1). 
B) A in graph (1). 
C) C + D in graph (2). 
D) C in graph (2).

Refer to the Graphs Shown