In the long run, equilibrium for a monopolist is when
A)the short-run average cost curve is at its lowest point.
B)the long-run average cost curve is at its lowest point.
C)the short-run and long-run average cost curves are at their lowest points.
D)None of these is necessarily true.

Question

Quizplus · Accepted Answer

In the long run, a monopolist's equilibrium does not necessarily align with the lowest points of the short-run or long-run average cost curves. Monopolists prioritize profit maximization, which occurs where marginal cost equals marginal revenue, rather than minimizing cost.

In the Long Run, Equilibrium for a Monopolist Is When