2

Refer to the following data regarding a Monopoly firm. Quantity (Units) 2 3 4 5 6 7 8 AR ($) 24 21 18 15 12 9 6 MR ($) 21 15 9 3 -3 -9 -15 MC ($) 7 5 9 11 12 13 13.5 AC ($) 25 18.34 16 15 14.5 14.28 13.68 Under Marginal Cost Pricing system of controlling monopoly, monopolist will O A. Get profits $10 O B. Incur loss $10 O C. Earn profit $50 O D. Incur loss $15