Use the following to answer question(s): Computing Monopoly Profit -(Exhibit: Computing Monopoly Profit) Producing at point N would: A) result in MR = MC. B) result in positive economic profits. C) never be profit maximizing, since at this output MR 0. D) result in the firm breaking even.

Question

Use the following to answer question(s): Computing Monopoly Profit
 
-(Exhibit: Computing Monopoly Profit) Producing at point N would:
A) result in MR = MC. 
B) result in positive economic profits. 
C) never be profit maximizing, since at this output MR < 0 and MC > 0. 
D) result in the firm breaking even.

Quizplus · Accepted Answer

Producing at point N would mean that the marginal revenue (MR) is less than zero while the marginal cost (MC) is greater than zero, indicating that producing at this point would not be profit-maximizing since the firm would be losing money on each additional unit produced.

Use the Following to Answer Question(s): Computing Monopoly Profit