Asked by
Tapasya Menon
on Dec 12, 2024
Verified
A monopolist will earn economic profits as long as his price exceeds
A) marginal revenue.
B) average fixed cost.
C) average variable cost.
D) average total cost.
Economic Profits
The gap between the total income a business generates and all of its expenditures, taking into account both direct and hidden costs.
Average Total Cost
The total cost of production divided by the number of units produced, providing a per-unit cost of production.
- Determine the circumstances that enable monopolists to achieve economic gains or incur losses.
Verified Answer
MN
Learning Objectives
- Determine the circumstances that enable monopolists to achieve economic gains or incur losses.