The figure above shows a monopoly's total revenue and total cost curves.
-Using the figure above,which of the following statements are correct?
i.When 3 haircuts are produced,the firm's ATC is $10.
ii.If the firm charges each customer the same price for a haircut,the price of a haircut is $14.
iii.The firm's is NOT a perfect competitor.
A) i only
B) ii only
C) i and ii
D) i and iii
E) i, ii, and iii

Question

The figure above shows a monopoly's total revenue and total cost curves.
-Using the figure above,which of the following statements are correct?
i.When 3 haircuts are produced,the firm's ATC is $10.
ii.If the firm charges each customer the same price for a haircut,the price of a haircut is $14.
iii.The firm's is NOT a perfect competitor.
A) i only 
B) ii only 
C) i and ii 
D) i and iii 
E) i, ii, and iii

Quizplus · Accepted Answer

The statements i, ii, and iii are correct based on the figure. Statement i is correct if the ATC curve shows $10 at 3 haircuts. Statement ii is correct if the price line indicates $14 per haircut. Statement iii is correct if the firm is not a price taker, which is characteristic of a non-perfectly competitive market.

The Figure Above Shows a Monopoly's Total Revenue and Total