If a pure monopolist is producing at that output where P = ATC, then
A)its economic profits will be zero.
B)it will be realizing losses.
C)it will be producing less than the profit-maximizing level of output.
D)it will be realizing an economic profit.

Question

Quizplus · Accepted Answer

When a firm's price (P) equals its average total cost (ATC), it means that the firm is covering all its costs, including a normal return on investment, but it is not earning any economic profits above that normal return.

If a Pure Monopolist Is Producing at That Output Where