In the Short Run, Even If a Monopoly's Total Revenue

question 12

True/False

In the short run, even if a monopoly's total revenue does not cover its variable costs, it should continue to produce because ultimately in the long run, the monopoly will start earning profits.

---

Definitions:

P(A ∪ B)

The probability that at least one of two events, A or B, occurs, including the possibility that both events occur simultaneously.

P(A | B)

Conditional Probability of A given B, representing the probability of event A occurring given that event B is known to occur.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other event(s), a fundamental concept in probability.

P(A | B)

Represents the conditional probability of event A occurring given that event B has occurred.