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AP® Microeconomics

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Moderate

Monopoly Output from Total Revenue Curve

APMICR-XIJBY4

The graph below represents the total revenue curve for a monopoly.

Created for Albert.io. Copyright 2016. All rights reserved.

Which of the following is true for the profit-maximizing output of this monopoly?

A

The profit-maximizing output will be Q2.

B

The profit-maximizing output will be in the 0 - Q2 range.

C

The profit-maximizing output will be in the Q2 - Q4 range.

D

The profit-maximizing output may be anywhere in the 0 - Q4 range.

E

The profit-maximizing output may be anywhere in the Q1 - Q3 range.