Exhibit 9.7

-Refer to Exhibit 9.7,which shows the cost and revenue curves for a monopolist.The total cost of producing the profit-maximizing output for the monopolist is _____
A)$95,200.
B)$84,000.
C)$72,800.
D)$53,200.
E)$42,000.

Question

Exhibit 9.7
 
-Refer to Exhibit 9.7,which shows the cost and revenue curves for a monopolist.The total cost of producing the profit-maximizing output for the monopolist is _____
A)$95,200. 
B)$84,000. 
C)$72,800. 
D)$53,200. 
E)$42,000.

Quizplus · Accepted Answer

The total cost of producing the profit-maximizing output for a monopolist is determined by finding the quantity where marginal cost equals marginal revenue and then using the total cost curve to find the cost at that quantity. Based on the given options, $72,800 is the correct total cost for the profit-maximizing output.

Exhibit 9.7 -Refer to Exhibit 9.7,which Shows the Cost and Revenue Curves