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If the Average Total Cost Curve Is Always Above the Demand

Question 52

Multiple Choice

If the average total cost curve is always above the demand curve for a monopolist, _____.


A) the monopolist will be suffering from economic losses
B) the monopolist will be facing higher competition as there will be increased entry of rival firms into the market
C) the monopolist will be earning an economic profit
D) the monopolist will be producing inefficiently
E) the monopolist will be earning normal profit

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