Figure 7-9
 

Of the graphs in Figure 7-9, which represents average fixed cost?

If diminishing marginal returns is in effect

A) marginal costs fall. B) marginal costs rise. C) average costs fall. D) average revenue is constant.

In the short run, a monopoly may

a. only earn positive economic profits. b. only earn zero economic profit, c. earn positive economic profits or economic losses. d. only earn economic losses.