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Question 114

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Use the following to answer questions: Use the following to answer questions: -(Table: Lunch) Look at the figure Lunch. Joe makes and sells picnic lunches to people taking all-day rafting trips on the river. The marginal cost and average cost of each lunch are a constant $4. If Joe is a monopolist, what price will he charge for a lunch in the long run? A) $9 B) $7 C) $5 D) $3
-(Table: Lunch) Look at the figure Lunch. Joe makes and sells picnic lunches to people taking all-day rafting trips on the river. The marginal cost and average cost of each lunch are a constant $4. If Joe is a monopolist, what price will he charge for a lunch in the long run?


A) $9
B) $7
C) $5
D) $3

Correct Answer:

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