-In Figure 10-14,the total cost to the non-discriminating monopoly at the profit-maximizing output is
A)$1,500.00
B)$1,137.50
C)$787.50
D)$875.00
E)none of these

Question

-In Figure 10-14,the total cost to the non-discriminating monopoly at the profit-maximizing output is
A)$1,500.00 
B)$1,137.50 
C)$787.50 
D)$875.00 
E)none of these

Quizplus · Accepted Answer

The total cost to the non-discriminating monopoly at the profit-maximizing output is $1,137.50. This is because the profit-maximizing output is where marginal cost equals marginal revenue. At this output, the total cost is equal to the area under the marginal cost curve up to the profit-maximizing output. In this case, the area under the marginal cost curve up to the profit-maximizing output is $1,137.50.

-In Figure 10-14,the Total Cost to the Non-Discriminating Monopoly at the Profit-Maximizing