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Use Figure: Profit-Maximizing Quantity and Price

Question 36

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Use Figure: Profit-Maximizing Quantity and Price. The figure depicts the demand curve, marginal revenue curve, and marginal cost curve that are facing a monopolist. Assume that the monopolist is operating at its profit-maximizing point. If the total profit of the monopolist is $200, then the average total cost of production is:

Figure: Profit-Maximizing Quantity and Price
Use Figure: Profit-Maximizing Quantity and Price. The figure depicts the demand curve, marginal revenue curve, and marginal cost curve that are facing a monopolist. Assume that the monopolist is operating at its profit-maximizing point. If the total profit of the monopolist is $200, then the average total cost of production is: ​ Figure: Profit-Maximizing Quantity and Price   A)  $5. B)  $6. C)  $7. D)  $8.


A) $5.
B) $6.
C) $7.
D) $8.

Correct Answer:

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