Figure 15-4
-Refer to Figure 15-4. The average total cost curve for a monopoly firm is depicted by curve
A)A.
B)B.
C)C.
D)D.

Question

Figure 15-4 
-Refer to Figure 15-4. The average total cost curve for a monopoly firm is depicted by curve
A)A. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

The average total cost curve for a monopoly firm is depicted by curve C because it represents the point where the firm produces at the lowest possible average cost. At this point, the firm can maximize its profits. Curve A is the average total cost curve for a firm in perfect competition, curve B is the average total cost curve for a monopolistically competitive firm, and curve D is not a relevant cost curve.

Figure 15-4 -Refer to Figure 15-4. the Average Total Cost Curve for Cost