Suppose a monopolist faces the following costs for the various levels of output shown below

Economics Nov 21, 2020

Suppose a monopolist faces the following costs for the various levels of output shown below. Output Total Cost Average Total Cost 50 250 $1,500 6,000 16,000 30,000 1250 2,500 5,000 50,000 Instructions: Enter your answers rounded to two decimal places. Calculate ATC for each level of output listed in the table. Enter your answers in the table above.

Expert Solution

OUTPUT	TOTAL COST	AVERAGE TOTAL COST
50	1500	1500/50=30
250	6000	6000/250=24
1250	16000	16000/1250=12.8
2500	30000	30000/2500=12
5000	50000	50000/5000=10

Average Total Cost is declining so,its a natural monopolist

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