A monopolist will shut down in the short run if:
A) price exceeds marginal revenue.
B) price is less than marginal revenue.
C) price is less than average total cost.
D) total revenue is less than total variable cost.

Question

Quizplus · Accepted Answer

A monopolist will shut down in the short run if total revenue is less than total variable cost, as it cannot cover its variable costs and would minimize losses by ceasing production.

A Monopolist Will Shut Down in the Short Run If