-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be
A) $30.
B) $40.
C) $80.
D) $140.

Question

-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be
A) $30. 
B) $40. 
C) $80. 
D) $140.

Quizplus · Accepted Answer

The total cost for the monopoly when maximizing profit includes both fixed and variable costs. Given that fixed cost is $20, the remaining cost must be variable costs. Since the total cost is $80, the variable cost is $60, making the total cost $80.

-An Unregulated, Single-Price Monopoly Is Shown in the Figure Above