Which of the following denotes the typical shape of the monopolist's total cost curve?

• A. Upward-sloping and convex
• B. Downward-sloping and concave
• C. Horizontal and linear
• D. U-shaped

Answer: (A)

Verified step by step guidance

1. Recall that the total cost (TC) curve represents the total cost of production at different output levels for a firm.
2. Understand that for a monopolist, as output increases, costs generally increase due to the use of more inputs, so the total cost curve is typically upward-sloping.
3. Consider the shape of the curve: convex means the slope of the total cost curve increases as output increases, reflecting increasing marginal costs at higher output levels.
4. Recognize that a downward-sloping total cost curve would imply costs decrease as output increases, which is not typical for production costs.
5. Recall that a U-shaped curve is usually associated with average cost curves, not total cost curves, and a horizontal linear curve would imply constant total costs regardless of output, which is unrealistic.