Question
UESTION 26 On the graph, what is the long-run profit earned by the monopolist? AEFB AJC...
UESTION 26
-
On the graph, what is the long-run profit earned by the monopolist?
AEFB
AJC
AFB
This monopolist earns long-run losses.
Figure 22.4 Dollars/unit A E Marginal Cost Average Total Cost M F B J Average Variable Cost C D H Demand 0 I KL N Quantity (units/week) Marginal Revenue
Answers
Answer :- AEFB
Explanation :-
=> in the given figure we see that average total cost is above E point. so Upto E point the firm will realise the profits.
=> so profit maximize point is 'H 'and the average variable cost covers at point of 'G'. so after upto point of 'E' the firm make profit which is area of 'AEFB'
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