A monopolist operates at the minimum point of its ATC curve
A)only in the short run.
B)only in the long run.
C)in both the short run and the long run.
D)in neither the short run nor the long run.

Question

Quizplus · Accepted Answer

A monopolist does not operate at the minimum point of its ATC curve because it maximizes profit where marginal cost equals marginal revenue, which typically does not coincide with the minimum ATC.

A Monopolist Operates at the Minimum Point of Its ATC