Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by th
e monopolist for producing the profit-maximizing output is _____ Group of answer choices $16,500. $24,200. $16,200. $19,800. $30,800.
1 answer:
Answer: $19,800
Explanation;
The Monopolist will maximize output at the point where Marginal Revenue equals Marginal Cost because at this point all resources are being fully utilized.
Total Cost = Average Total Cost * Quantity produced
At the point where MR=MC, the quantity produced is 1,100 units.
The Average Total Cost tallying with this is $18 per unit.
Total Cost = 18 * 1,100
= $19,800
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