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.Profit can always be increased by decreasing the level of output by one unit if the monopolist is currently operating at a level of output in which:
A)curve C curve B
B)curve B curve C
C)curve B curve D
D)curve D curve B

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.Profit can always be increased by decreasing the level of output by one unit if the monopolist is currently operating at a level of output in which:
A)curve C > curve B 
B)curve B > curve C 
C)curve B > curve D 
D)curve D > curve B

Quizplus · Accepted Answer

If curve C (marginal cost) is greater than curve B (marginal revenue), reducing output will increase profit because the cost of producing an additional unit exceeds the revenue it generates.

Graph 15-2 This Graph Reflects the Cost and Revenue