Question

Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist for producing the profit-maximizing output is _____ Group of answer choices $16,500. $24,200. $16,200. $19,800. $30,800.

Answer 1

Answer: $19,800

Explanation:

The Monopolist will produce at a quantity where Marginal Revenue equals Marginal cost.

From the exhibit, that quantity is shown to be 1,100.

At that quantity, the average total cost incurred is $18.

Total Cost

= Average total cost * quantity

= 18 * 1,100

= $19,800