Economics 9708 · AS & A Level · 7.6

7.6 — practice question

The diagram illustrates the cost and revenue curves for a monopoly producer whose sole production cost is a fixed cost. What action will such a monopolist take?

  • Aset a price of OX in the short run and the long run
  • Bset a price of OY in the short run and the long run
  • Cset a price of OX in the short run, but discontinue production in the long run
  • Dset a price of OY in the short run, but discontinue production in the long run

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