Figure 14-1
-Refer to Figure 14-1.The shape of the average total cost curve in the figure suggests an opportunity for a profit-maximizing monopolist to take advantage of

Question

Figure 14-1 
-Refer to Figure 14-1.The shape of the average total cost curve in the figure suggests an opportunity for a profit-maximizing monopolist to take advantage of

Quizplus · Accepted Answer

The average total cost curve's shape indicates that costs decrease as output increases, which is characteristic of economies of scale. This allows a monopolist to lower average costs and increase profits by expanding production.

Figure 14-1 -Refer to Figure 14-1.The Shape of the Average Total Cost