With falling average costs, a monopolist is able to produce in

Name: With falling average costs, a monopolist is able to produce in
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Question

Quizplus · Accepted Answer

With falling average costs, the monopolist is able to produce at a lower cost per unit. This means that the firm can increase its output without increasing its average cost, which is only possible if it produces in the least-cost way. Therefore, the best choice would be B) the least-cost way.

With Falling Average Costs, a Monopolist Is Able to Produce