Figure 15-4

-Refer to Figure 15-4.A profit-maximizing monopoly's total cost is equal to
A) P4 x Q3.
B) P2 x Q3.
C) P1 x Q3.
D) (P4-P1) x Q3.

Question

Figure 15-4
 
-Refer to Figure 15-4.A profit-maximizing monopoly's total cost is equal to
A) P4 x Q3. 
B) P2 x Q3. 
C) P1 x Q3. 
D) (P4-P1) x Q3.

Quizplus · Accepted Answer

The total cost curve is represented by the vertical distance between the average total cost curve and the marginal cost curve. At Q3, the monopoly's total cost is equal to P1 x Q3. Therefore, the correct answer is C.

Figure 15-4 -Refer to Figure 15-4.A Profit-Maximizing Monopoly's Total Cost Is Equal