If a monopolist is producing at an output rate at which P = ATC, then
A) its economic profit will be zero.
B) its economic profit will be positive.
C) it is maximizing its profits.
D) it is minimizing its losses.

Question

Quizplus · Accepted Answer

When a monopolist is producing at an output rate at which P = ATC, it means that the price it charges for its product is equal to its average total cost. In this case, the monopolist is earning only normal profits or no economic profits. Hence, the best answer choice is A) its economic profit will be zero.

If a Monopolist Is Producing at an Output Rate at Which