Question
Refer to Table 15-3. Consider that the monopolist has total fixed costs of $40 and a constant marginal cost of $5. At the profit-maximizing level
Refer to Table 15-3. Consider that the monopolist has total fixed costs of $40 and a
constant marginal cost of $5. At the profit-maximizing level of output, what is the monopolist's
average total cost?
a.
$5.82
b.
$6.74
c.
$7.50
d.
$9.00
Can you please tell me why the answer is C
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
