In the Short Run, When a Monopolist Incurs a Loss

question 227

Multiple Choice

In the short run, when a monopolist incurs a loss, it will

• A) always shut down.
• B) always produce where marginal cost equals marginal revenue.
• C) produce as long as total revenue is sufficient to cover variable costs.
• D) produce as long as total revenue is sufficient to cover fixed costs.

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Definitions:

Credit Period

The duration of time allowed by a seller to the buyer to pay for the goods or services received, without incurring any additional costs.