QUESTION 24 Table 1516 A monopolist faces the following dema

QUESTION 24 Table 15-16 A monopolist faces the following demand curve Price Quantity 9 10 16 23 45 S2 Refer to Table 15-16. The monopolist has total fixed costs of $40 and a constant marginal cost of $5. At the profit-maximizing level of output, the monopolist\'s average total cost is a. $9.00 b.S6.74 C.$7.50 Od. S5.82

Solution

24. The correct answer is D.

25. The correct answer is D. Firms will produce where P=MC under a competitive situation.