A monopolist will shut down in the short run if:
A)price exceeds marginal revenue.
B)price is less than marginal revenue.
C)price is less than average total cost.
D)total revenue is less than total variable cost.
E)total revenue is less than total fixed cost.

Question

Quizplus · Accepted Answer

A monopolist will shut down in the short run if total revenue is less than total variable cost because it cannot cover its variable costs, leading to losses greater than its fixed costs.

A Monopolist Will Shut Down in the Short Run If