Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. If the monopoly supplies 400 widgets, it will
A. earn a profit, but less than it would earn if it produced 500 widgets.
B. maximize profits.
C. suffer an economic loss.
D. break even.
Answer: B
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