Suppose frank is a monopolist in the garden gnome market


Suppose Frank is a monopolist in the garden gnome market and is producing his profit-maximizing level of output. Suppose further that at this level of production his average total cost is $150, his average variable cost is $130, and the price of one of his gnomes is $160. It can be concluded with certainty that the marginal cost of the last gnome Frank sold was _____, everything else held constant.

1. greater than $160

2. greater than or equal to $160

3. $160

4. less than or equal to $160

5. less than $160

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Business Economics: Suppose frank is a monopolist in the garden gnome market
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