Figure 8.14
-Consider the monopoly depicted in Figure 8.14. Relative to the cost of producing the quantity the monopolist would choose under an average-cost pricing policy, the cost of producing Q4 units is

Question

Quizplus · Accepted Answer

The monopolist would choose to produce Q4 units under an average-cost pricing policy because this is the quantity at which average cost is minimized. The cost of producing Q4 units is therefore less than the cost of producing any other quantity.

Figure 8.14 -Consider the Monopoly Depicted in Figure 8.14. Relative to the to the Cost