-Given the market demand and cost data in the above figure, the existence of a monopoly firm producing 8 million cubic feet of natural gas makes it possible to produce natural gas at a long-run average cost of
A) 10 cents per cubic foot.
B) 20 cents per cubic foot.
C) 30 cents per cubic foot.
D) 40 cents per cubic foot.

Question

-Given the market demand and cost data in the above figure, the existence of a monopoly firm producing 8 million cubic feet of natural gas makes it possible to produce natural gas at a long-run average cost of
A) 10 cents per cubic foot. 
B) 20 cents per cubic foot. 
C) 30 cents per cubic foot. 
D) 40 cents per cubic foot.

Quizplus · Accepted Answer

The correct answer is A because the long-run average cost of producing 8 million cubic feet of natural gas is 10 cents per cubic foot.

-Given the Market Demand and Cost Data in the Above