The monopolist's cost curves differ from those of a perfectly competitive firm in that:
A)marginal cost is no longer equal to average variable cost.
B)average total cost is now minimized where it crosses marginal cost.
C)average total cost and average variable costs are now equal.
D)The cost curves are the same for a firm regardless of market structure.

Question

Quizplus · Accepted Answer

The cost curves themselves (marginal cost, average total cost, and average variable cost) are the same for any firm, regardless of whether it is a monopolist or in perfect competition. The difference lies in how these firms set prices and output levels, not in the structure of their cost curves.

The Monopolist's Cost Curves Differ from Those of a Perfectly