A monopolist is producing an output such that AC = $4,P = $5,MC = $2,and MR = $3.From this information we can say that the business is realizing:
A)an economic loss that could be reduced by producing more output
B)an economic loss that could be reduced by producing less output
C)an economic profit that could be increased by producing less output
D)an economic profit that could be increased by producing more output
E)zero economic profit

Question

Quizplus · Accepted Answer

The Answer of A monopolist is producing an output such that AC = $4,P = $5,MC = $2,and MR = $3.From this information we can say that the business is realizing:
A)an economic loss that could be reduced by producing more output
B)an economic loss that could be reduced by producing less output
C)an economic profit that could be increased by producing less output
D)an economic profit that could be increased by producing more output
E)zero economic profit

A Monopolist Is Producing an Output Such That AC =