A monopolistic competitor has fixed costs of $100 and marginal
Costs of $10 per unit.What is its average cost of producing 100
Units?
A)$10
B)$11
C)$1,100
D)$2,000

Name: A monopolistic competitor has fixed costs of $100 and marginal Costs of $10 per unit.What is its average cost of producing 100 Units? A)$10 B)$11 C)$1,100 D)$2,000
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Average Total Cost (ATC) = Total Cost / Quantity
Total Cost = Fixed Cost + (Marginal Cost x Quantity)
Total Cost = $100 + ($10 x 100) = $1,100
ATC = $1,100 / 100 = $11

A Monopolistic Competitor Has Fixed Costs of $100 and Marginal