Figure 10.10 depicts the cost and revenue curves for a monopolist.

-Refer to Figure 10.10 to answer this question.At the profit-maximizing level of output,what is the amount of total costs?
A)$20.
B)$600.
C)$900.
D)$1,200.
E)Cannot be determined from this information.

Question

Figure 10.10 depicts the cost and revenue curves for a monopolist.
 
-Refer to Figure 10.10 to answer this question.At the profit-maximizing level of output,what is the amount of total costs?
A)$20. 
B)$600. 
C)$900. 
D)$1,200. 
E)Cannot be determined from this information.

Quizplus · Accepted Answer

At the profit-maximizing level of output, total revenue equals total costs. From Figure 10.10, we can see that total revenue is $900 at the profit-maximizing level of output. Therefore, total costs must also be $900.

Figure 1010 Depicts the Cost and Revenue Curves for a Monopolist