A monopolist always ________ if its ATC schedule is everywhere above its demand schedule.
A) shuts down
B) breaks even
C) suffers a loss
D) earns a positive profit

Question

Quizplus · Accepted Answer

A monopolist suffers a loss if its average total cost (ATC) schedule is everywhere above its demand schedule, because it means the price it can charge based on demand is always less than its costs per unit.

A Monopolist Always ________ If Its ATC Schedule Is Everywhere