For a monopolist, if price is above average total cost, the monopolist is
A)earning an economic profit.
B)taking an economic loss.
C)minimizing total fixed costs.
D)minimizing total variable costs.

Question

Quizplus · Accepted Answer

When a monopolist's price is above average total cost, it means that the revenue per unit sold is greater than the cost per unit, leading to an economic profit.

For a Monopolist, If Price Is Above Average Total Cost