Which of the following is not necessarily true for a profit-maximizing single-price monopolist?
A) P ATC
B) P MC
C) P MR
D) MR = MC

Name: Which of the following is not necessarily true for a profit-maximizing single-price monopolist? A) P > ATC B) P > MC C) P > MR D) MR = MC
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Question

Which of the following is not necessarily true for a profit-maximizing single-price monopolist?
A) P > ATC
B) P > MC
C) P > MR
D) MR = MC

Quizplus · Accepted Answer

A monopolist may choose to operate at a price where P = ATC in the short run, and continue to operate in the long run if they have barriers to entry. However, profit maximization requires P > MC and P = MR.

Which of the Following Is Not Necessarily True for a Profit-Maximizing