Suppose a monopolist faces the demand curve and cost curves shown below.
FIGURE 10-5
-Refer to Figure 10-5. If the single-price monopolist is producing at the profit-maximizing level of output, the total cost is represented by the area

Question

Suppose a monopolist faces the demand curve and cost curves shown below.
  FIGURE 10-5
-Refer to Figure 10-5. If the single-price monopolist is producing at the profit-maximizing level of output, the total cost is represented by the area

Quizplus · Accepted Answer

The total cost for a single-price monopolist at the profit-maximizing level of output is represented by the area under the average total cost curve up to the quantity produced, which is shown by area 0P2bQ0.

Suppose a Monopolist Faces the Demand Curve and Cost Curves