Which of the following best describes a monopolist in the short run?
A) It always suffers an economic loss.
B) It always earns an economic profit.
C) It always earns a normal rate of return.
D) It may make an economic loss, an economic profit, or zero economic profits.

Question

Quizplus · Accepted Answer

A monopolist may make an economic loss, an economic profit, or zero economic profits in the short run depending on the demand and cost conditions. The monopolist may earn an economic profit if the demand is high and the cost is low, incur an economic loss if the demand is low and the cost is high, or earn zero economic profit if the revenue covers the cost but there is no extra profit left over.

Which of the Following Best Describes a Monopolist in the Short