(Figure: Monopoly Markup) Refer to the figure. The monopolist's markup is: Figure: Monopoly Markup
A) a - b.
B) b - d.
C) d.

Name: (Figure: Monopoly Markup) Refer to the figure. The monopolist's markup is: Figure: Monopoly Markup A) a - b. B) b - d. C) d.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

(Figure: Monopoly Markup) Refer to the figure. The monopolist's markup is: Figure: Monopoly Markup 
A) a - b. 
B) b - d. 
C) d.

Quizplus · Accepted Answer

The monopolist's markup is equal to the difference between the price (point B) and the marginal cost (point D), which is represented by the distance between points B and D on the graph. Therefore, the answer is B - D.

(Figure: Monopoly Markup) Refer to the Figure