The figures given below represent the revenue curves of a monopolist. Figure 24.2 TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
Refer to Figure 24.2.In order to maximize profits, what quantity should the monopolist produce?
A)B
B)E
C)Between B and E
D)Impossible to determine because we are not given the cost curves.
E)Impossible to determine because we are not given the demand curve.

Question

The figures given below represent the revenue curves of a monopolist. Figure 24.2  TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
Refer to Figure 24.2.In order to maximize profits, what quantity should the monopolist produce?
A)B 
B)E 
C)Between B and E 
D)Impossible to determine because we are not given the cost curves. 
E)Impossible to determine because we are not given the demand curve.

Quizplus · Accepted Answer

The Answer of The figures given below represent the revenue curves of a monopolist. Figure 24.2  TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
Refer to Figure 24.2.In order to maximize profits, what quantity should the monopolist produce?
A)B 
B)E 
C)Between B and E 
D)Impossible to determine because we are not given the cost curves. 
E)Impossible to determine because we are not given the demand curve.

The Figures Given Below Represent the Revenue Curves of a Monopolist