The Following Graph Depicts the Costs and Revenues for an Unregulated

question 133

Multiple Choice

The following graph depicts the costs and revenues for an unregulated monopolist:

-Refer to the graph above to answer this question.What is the total cost at the monopolist's profit-maximizing output?

• A)$80.
• B)$160.
• C)$180.
• D)$288.
• E)$300.

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Definitions:

Sunk Cost

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Scrap Value

The estimated resale value of an asset after its useful life is over and it is deemed to no longer be usable for its intended purpose.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes towards covering fixed costs and earning profit.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.