Table 15-3 Consider the Following Demand and Cost Information for a Monopoly

question 33

Multiple Choice

Table 15-3
Consider the following demand and cost information for a monopoly.
-Refer to Table 15-3. The marginal cost of the 4th unit is

• A)$7.
• B)$12.
• C)$25.
• D)$60.

---

Definitions:

Price-Taker Industry

A sector in which businesses must accept the prevailing prices in the market as they have no influence over setting them.

Marginal Costs

The additional cost incurred by producing one more unit of a product or service.

Average Total Cost

The total cost of production divided by the quantity of output produced.

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.