A Monopolist Faces the Following Demand Curve

question 294

Multiple Choice

A monopolist faces the following demand curve:

The monopolist has total fixed costs of $40 and a constant marginal cost of $5.At the profit-maximizing level of output,the monopolist's average total cost is

• A) $9.00.
• B) $7.50.
• C) $6.74.
• D) $5.82.

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