-A monopolist would not be able to make a positive profit at any price output combination when
A) marginal cost is less than average total cost for one more unit of output.
B) the average variable cost curve is everywhere above the marginal revenue curve.
C) the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve.
D) the average total cost curve is everywhere above the demand curve.

Question

-A monopolist would not be able to make a positive profit at any price output combination when
A) marginal cost is less than average total cost for one more unit of output. 
B) the average variable cost curve is everywhere above the marginal revenue curve. 
C) the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve. 
D) the average total cost curve is everywhere above the demand curve.

Quizplus · Accepted Answer

A monopolist cannot make a positive profit if the average total cost curve is everywhere above the demand curve, as it would mean the cost of producing any quantity is always higher than what consumers are willing to pay for that quantity.

-A Monopolist Would Not Be Able to Make a Positive