In the short run,a monopolist will always shut down when _____
A)total cost is greater than total revenue at all output levels.
B)total variable cost is greater than fixed cost.
C)total revenue is greater than total variable cost at all output levels.
D)total revenue is greater than fixed cost at all output levels.
E)total variable cost is greater than total revenue at all output levels.

Question

Quizplus · Accepted Answer

A monopolist will shut down in the short run if total revenue is less than total variable cost at all output levels, as it cannot cover its variable costs.

In the Short Run,a Monopolist Will Always Shut Down When