Figure 10-1 Figure 10-1 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 10-1.If the firm's average total cost curve is ATC1,the firm will
A)suffer a loss.
B)break even.
C)make a profit.
D)face competition.

Question

Figure 10-1  Figure 10-1 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 10-1.If the firm's average total cost curve is ATC1,the firm will
A)suffer a loss. 
B)break even. 
C)make a profit. 
D)face competition.

Quizplus · Accepted Answer

If the firm's average total cost curve is ATC1 and it is below the market price, the firm will make a profit.

Figure 10-1 Figure 10-1 Above Shows the Demand and Cost