If the profit-maximizing price is less than LRAC, a monopoly firm will go out of business in the long run.

Name: If the profit-maximizing price is less than LRAC, a monopoly firm will go out of business in the long run.
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If the profit-maximizing price is less than long-run average cost (LRAC), the firm is not covering all of its costs in the long run, which means it will not be sustainable and will eventually go out of business if conditions do not change.

If the Profit-Maximizing Price Is Less Than LRAC, a Monopoly