Economics 9708 · AS & A Level · 7.6

7.6 — practice question

In the diagram, DD shows the demand curve for a monopoly producer, while the rectangular hyperbola ATC represents the firm’s average total cost curve. What level of output will maximise the firm’s profit?

  • A2000 units
  • B5000 units
  • C8000 units
  • D10 000 units

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