This graph shows the cost and revenue curves faced by a monopoly. According to the graph shown,if Q2 units are being produced,this monopolist:
A) is earning negative profits.
B) should cut back production to increase profits.
C) is maximizing revenue.
D) is maximizing profits.

Question

This graph shows the cost and revenue curves faced by a monopoly.  According to the graph shown,if Q2 units are being produced,this monopolist:
A) is earning negative profits. 
B) should cut back production to increase profits. 
C) is maximizing revenue. 
D) is maximizing profits.

Quizplus · Accepted Answer

The Answer of This graph shows the cost and revenue curves faced by a monopoly.  According to the graph shown,if Q2 units are being produced,this monopolist:
A) is earning negative profits. 
B) should cut back production to increase profits. 
C) is maximizing revenue. 
D) is maximizing profits.

This Graph Shows the Cost and Revenue Curves Faced by a Monopoly