JoJo has a monopoly producing stringless yoyos.His company is called JoJo's Yoyos.As a result of his monopoly position,
A)he is guaranteed a profit.
B)if he loses money in the short run,he will make money in the long run.
C)his average total costs will always be lower than the price he charges.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Having a monopoly does not guarantee profits, ensure long-run profitability if there are short-run losses, or always result in average total costs being lower than the price charged. Market conditions, demand, costs, and regulatory factors can affect the outcomes for a monopoly.

JoJo Has a Monopoly Producing Stringless Yoyos