The graph shown represents the cost and revenue curves faced by a monopoly. If Q2 units are being produced, the monopolist:
A)is earning negative profits.
B)should decrease production to increase profits.
C)is maximizing revenue.
D)is maximizing profits.

Question

The graph shown represents the cost and revenue curves faced by a monopoly.  If Q2 units are being produced, the monopolist:
A)is earning negative profits. 
B)should decrease production to increase profits. 
C)is maximizing revenue. 
D)is maximizing profits.

Quizplus · Accepted Answer

The Answer of The graph shown represents the cost and revenue curves faced by a monopoly.  If Q2 units are being produced, the monopolist:
A)is earning negative profits. 
B)should decrease production to increase profits. 
C)is maximizing revenue. 
D)is maximizing profits.

The Graph Shown Represents the Cost and Revenue Curves Faced