The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopoly firm never incurs a loss as it is the sole supplier of the good in the market.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopoly firm never incurs a loss as it is the sole supplier of the good in the market.

Quizplus · Accepted Answer

A monopolist can incur a loss if its total cost is higher than its total revenue. However, in the long run, the monopolist may be able to avoid losses by adjusting its output and pricing.

The Figure Given Below Shows the Cost and Revenue Curves