The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Refer to Figure 11.7. At the profit maximizing level of output, the monopolist will:
A)earn economic profit.
B)earn super-normal profit.
C)charge a price equal to the marginal cost of production.
D)charge a price lower than the price charged by a perfectly competitive firm.
E)zero profit.

Question

The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
  D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Refer to Figure 11.7. At the profit maximizing level of output, the monopolist will:
A)earn economic profit. 
B)earn super-normal profit. 
C)charge a price equal to the marginal cost of production. 
D)charge a price lower than the price charged by a perfectly competitive firm. 
E)zero profit.

Quizplus · Accepted Answer

The Answer of The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
  D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Refer to Figure 11.7. At the profit maximizing level of output, the monopolist will:
A)earn economic profit. 
B)earn super-normal profit. 
C)charge a price equal to the marginal cost of production. 
D)charge a price lower than the price charged by a perfectly competitive firm. 
E)zero profit.

The Following Figures Show the Demand and Cost Curves of a Perfectly