Pure monopoly - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1985

If monopoly is attempting to maximize profit which of the following should it attempt to do?

A. Select that output at which ATC is at minimum
B. Set price equal to TC
C. Maximize profit per unit
D. Maximize revenue
E. Equate marginal cost to marginal revnue

Question 12:

• JAMB 1993

In the diagram above, what is the lowest possible price the monopolist could charge and still break even without there being excess demand?

A. P_d
B. P₂
C. P₃
D. P₄