A Monopolist Will Not Be Able to Receive a Positive

question 13

Multiple Choice

A monopolist will not be able to receive a positive economic profit at any price-output combination at which

• A) marginal cost is less than average total cost when the monopolist has equated marginal revenue and marginal cost.
• B) the average total cost curve is everywhere above the demand curve.
• C) marginal cost is less than average variable cost when the monopolist has equated marginal revenue and marginal cost.
• D) marginal revenue falls at a faster rate than marginal cost increases.