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The graphs below represent two monopolies.

If the monopolies shown in the graphs above face the same cost and demand data, which of the following will be true of their profits/losses?

A

The firm in Graph A will suffer economic losses while the firm in Graph B will earn economic profits.

B

The firm in Graph A will earn economic profits while the firm in Graph B will suffer economic losses.

C

They will both earn economic profits, but the firm in Graph A will have higher profits.

D

Both firms will earn economic profits, but the firm in Graph B will have higher profits.

E

Both firms will earn the same amount of economic profit.

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