Graph 15-2 This graph reflects the cost and revenue structure for a monopoly firm.Use the graph to answer the following question(s).
-Refer to Graph 15-2.The demand curve for a monopoly firm is depicted by curve:
A)A
B)B
C)C

Question

Graph 15-2  This graph reflects the cost and revenue structure for a monopoly firm.Use the graph to answer the following question(s).
-Refer to Graph 15-2.The demand curve for a monopoly firm is depicted by curve:
A)A 
B)B 
C)C

Quizplus · Accepted Answer

The demand curve for a monopoly firm is depicted by curve A, as it is the downward sloping curve that intersects with the y-axis. Therefore, the optimal choice for the firm would be to produce at the quantity where marginal revenue (MR) equals marginal cost (MC), which is at point E on curve A. This quantity will allow the firm to maximize profits by charging a higher price than their marginal cost.

Graph 15-2 This Graph Reflects the Cost and Revenue