-A monopolist will not earn any economic profits when
A) AVC is a minimum.
B) AFC is very high.
C) ATC lies above the demand curve.
D) ATC lies below the demand curve.

Question

-A monopolist will not earn any economic profits when
A) AVC is a minimum. 
B) AFC is very high. 
C) ATC lies above the demand curve. 
D) ATC lies below the demand curve.

Quizplus · Accepted Answer

A monopolist will not earn any economic profits when the average total cost (ATC) lies above the demand curve, as this indicates that the price they can charge based on demand is less than their total costs per unit, leading to losses or zero economic profit.

-A Monopolist Will Not Earn Any Economic Profits When