In the short run,a monopolist:
A) always suffers an economic loss.
B) always earns an economic profit.
C) always earns a normal rate of return.
D) may make an economic loss, an economic profit, or zero economic profits.

Question

Quizplus · Accepted Answer

In the short run, a monopolist can experience economic loss, economic profit, or zero economic profits. This is because the monopolist has the power to set its own price and output level, which can result in different outcomes depending on the demand for its product and the costs of production. The profit-maximizing outcome for a monopolist is to produce the quantity of output where marginal revenue equals marginal cost, which may or may not result in an economic profit.

In the Short Run,a Monopolist