If there is no output for which TR TC, a monopolist
A) will still earn a positive economic profit.
B) will not earn a positive economic profit.
C) will break even.
D) must shut down.

Question

If there is no output for which TR > TC, a monopolist
A) will still earn a positive economic profit.
B) will not earn a positive economic profit.
C) will break even.
D) must shut down.

Quizplus · Accepted Answer

If there is no output for which Total Revenue (TR) is greater than Total Cost (TC), it means the monopolist cannot cover its costs, let alone earn a profit. Therefore, the monopolist will not earn a positive economic profit.

If There Is No Output for Which TR > TC