Which of the following is TRUE if a monopolist faces a constant marginal cost? The monopolist faces a
A) constant total cost.
B) constant average variable cost.
C) perfectly elastic demand curve.
D) vertical demand curve.
E) vertical supply curve.

Question

Quizplus · Accepted Answer

If a monopolist faces a constant marginal cost, the average variable cost is also constant, as marginal cost is the change in total cost from producing one more unit, and with constant marginal cost, each additional unit costs the same to produce.

Which of the Following Is TRUE If a Monopolist Faces