Reference: Ref 13-2 (Table: Profit-Maximizing Monopolist) Refer to the table. For the quantity of 6 units, this monopolist's average cost and average revenue levels are:
A) $2.71 and $10 respectively.
B) $2.83 and $11 respectively.
C) $2.71 and $2 respectively.
D) $2.83 and $2 respectively.

Question

Reference: Ref 13-2 (Table: Profit-Maximizing Monopolist) Refer to the table. For the quantity of 6 units, this monopolist's average cost and average revenue levels are:
A) $2.71 and $10 respectively. 
B) $2.83 and $11 respectively. 
C) $2.71 and $2 respectively. 
D) $2.83 and $2 respectively.

Quizplus · Accepted Answer

At the quantity of 6 units, the average cost is $2.83 (found by dividing total cost of $17 by quantity of 6 units) and the average revenue is $11 (found by reading off the table where quantity demanded is 6).

Reference: Ref 13-2 (Table: Profit-Maximizing Monopolist) Refer to the Table