Which statement is the most accurate?
A)The monopolist produces at the minimum point of its average total cost curve.
B)The monopolist breaks even in the long run.
C)The monopolist faces the entire industry demand curve.
D)Nearly all monopolists are very large firms.

Question

Quizplus · Accepted Answer

The monopolist faces the entire industry demand curve because they are the sole provider of the good or service. They have control over the quantity supplied and can adjust prices to maximize profits. A is incorrect because the monopolist may not produce at the minimum point of its average total cost curve, as it may choose to produce less to maximize profits. B is incorrect because the monopolist can earn economic profits in the long run. D is incorrect because while some monopolists may be very large, this is not a necessary characteristic of a monopolist.

Which Statement Is the Most Accurate