Use the Following to Answer Question

Use the following to answer question:
Figure: Demand,Revenue,and Cost Curves
-(Figure: Demand,Revenue,and Cost Curves) Use Figure: Demand,Revenue,and Cost Curves.Figglenuts-R-Us is a monopolist in the figglenut market.If the government regulated the figglenut market by setting a price ceiling of $40,Figglenuts-R-Us might:

A) produce 60 figglenuts to maximize profits.
B) produce 120 figglenuts in the long run to maximize profits.
C) exit in the long run.
D) increase the price to $60.

Correct Answer:

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