Asked by
Mirlande Brande
on Nov 05, 2024Verified
A monopolist is not guaranteed positive economic profits solely because it is a monopoly since there may be no output for which
A) TR = TVC.
B) TR > TC.
C) MC = MR.
D) ATR < MR.
Positive Economic Profits
Positive economic profits occur when a firm's total revenues exceed its total costs, inclusive of both explicit and implicit costs.
Monopolist
An entity that is the sole provider of a particular product or service in the market, possessing the power to significantly influence prices and supply.
- Gain insight into the concept of economic profit and how it contrasts among monopolistic enterprises and those in competitive environments.
Verified Answer
VW
Learning Objectives
- Gain insight into the concept of economic profit and how it contrasts among monopolistic enterprises and those in competitive environments.