Figure 15-1
-Refer to Figure 15-1. The shape of the average total cost curve in the figure suggests an opportunity for a profit-maximizing monopolist to take advantage of
A)economies of scale.
B)diseconomies of scale.
C)diminishing marginal product.
D)increasing marginal cost.

Question

Figure 15-1 
-Refer to Figure 15-1. The shape of the average total cost curve in the figure suggests an opportunity for a profit-maximizing monopolist to take advantage of
A)economies of scale. 
B)diseconomies of scale. 
C)diminishing marginal product. 
D)increasing marginal cost.

Quizplus · Accepted Answer

The shape of the average total cost curve suggests it is downward sloping over a range, indicating that as production increases, the average total cost decreases. This is characteristic of economies of scale, where larger production volumes lead to lower per-unit costs.

Figure 15-1 -Refer to Figure 15-1. the Shape of the Average Total