So long as a monopolist finds itself in the situation where price is greater than average fixed cost at the profit-maximizing (loss-minimizing)level of output,the firm should continue to operate to minimize its losses.

Question

Quizplus · Accepted Answer

A monopolist should continue to operate if the price is greater than average variable cost, not average fixed cost, to cover variable costs and contribute to fixed costs.

So Long as a Monopolist Finds Itself in the Situation