1. As shown in Exhibit 8.11, the monopolist’s profit maximizing price-quantity point is a. A. b. B..

1. As shown in Exhibit 8.11, the monopolist’s profit maximizing price-quantity point is a. A. b. B. c. C. d. D. e. E. 2. Suppose a monopolist charges a price corresponding to the intersection of marginal cost and marginal revenue. If the price is between its average variable cost and average total cost curves, the firm will a. earn an economic profit.
b. stay in operation in the short run, but shut down in the long run if demand remains the same.
c. shut down.
d. none of the answers are correct.