Figure 10.2 shows a monopolist's demand curve. Suppose that the marginal cost is $6 for all units and the current output level is 4 units. Then which of the following is true?

A. The marginal revenue is less than the marginal cost.
B. The price is greater than the average total cost.
C. The firm is producing the profit maximizing level of output.
D. All of these are correct.


Answer: A

Economics

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