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Figure 9.5 -Refer to Figure 9.5.If the Monopolist Charges Price P* for Price

Question 98

Multiple Choice

Figure 9.5 Figure 9.5 -Refer to Figure 9.5.If the monopolist charges price P* for output Q*, in order to maximise profit or minimise loss in the short run, it should A) continue to produce because price is greater than average variable cost. B) shut down because price is greater than marginal cost. C) shut down because price is less than average total cost. D) continue to produce because a monopolist always earns a profit.
-Refer to Figure 9.5.If the monopolist charges price P* for output Q*, in order to maximise profit or minimise loss in the short run, it should


A) continue to produce because price is greater than average variable cost.
B) shut down because price is greater than marginal cost.
C) shut down because price is less than average total cost.
D) continue to produce because a monopolist always earns a profit.

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