If There Is No Output for Which TR > TC

question 72

Multiple Choice

If there is no output for which TR > TC, a monopolist

• A) will still earn a positive economic profit.
• B) will not earn a positive economic profit.
• C) will break even.
• D) must shut down.

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Definitions:

Retail Sales

The selling of goods and services directly to consumers for their personal use, typically in small quantities.

Capital-intensive Business

A business that requires a significant amount of capital investment to create and maintain operations, often in industries like manufacturing.

Labor-intensive Business

A type of business that requires a large amount of manual labor to produce goods or services, as opposed to automation or machinery.

Service-intensive Business

A type of business that relies heavily on providing services rather than goods, characterized by a high level of customer interaction and service delivery.