A MONOPOLIST MAY ENJOY ABNORMAL PROFIT ONLY IF ITS
A. marginal cost exceeds marginal revenue B. demand curve is perfectly elastic C. expenditure on advertisement increases D. price exceeds average total cost ✓ The answer to the question is: D. price exceeds average total cost In a monopoly market structure, there is only…
IF A MONOPOLIST IS INCURRING SHORT-RUN LOSSES, THIS MEANS THAT HIS
A. selling price is above the short-run marginal cost B. selling price is below the short-run marginal cost ✓ C. average revenue is greater than marginal revenue D. average revenue is less than marginal revenue The answer to the question is: B. selling…