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A monopolist sells 2,000 units for $20 each. The total cost of producing 2,000 units is $30,000. If the price falls to $19, the number of units sold increases to 2,100. The total cost of producing 2,100 units is $30,075. When the monopolist reduces its price from $20 to $19, its marginal revenue will
Average Variable Cost
The total variable cost divided by the quantity of output produced, representing the cost of producing one additional unit of goods.
Shutdown Point
The level of output and price at which a firm's revenue just covers its variable costs, below which it would be better for the firm to cease operations.
ATC Curve
Represents the average total cost of producing a good or service, calculated by dividing total cost by the quantity produced, and typically displayed as a graph.
AVC Curve
The Average Variable Cost curve, which graphs the per unit variable costs of production against the quantity of output.
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