Asked by
Harman Dhillon
on Dec 08, 2024Verified
If a monopolist is producing an output at a point where ATC > P > MC, then it is
A) breaking even.
B) earning positive economic profits.
C) earning negative economic profits.
D) covering total costs but not total variable costs.
Positive Economic Profits
Occurs when the total revenues of a firm exceed the total costs, including opportunity costs.
Total Costs
The comprehensive total of all spending required for the creation of goods or services, covering expenses that are both stationary and those subject to change.
- Explore the influence of monopolistic competition on social and economic environments, highlighting considerations for consumer welfare and efficiency.
Verified Answer
NC
Learning Objectives
- Explore the influence of monopolistic competition on social and economic environments, highlighting considerations for consumer welfare and efficiency.