Answer to Question #215633 in Microeconomics for Benny

Question

A monopolist will discontinue production if

Answer 1

A monopolist will discontinue production if the total revenue is not sufficient to cover the total cost used in production.

During this time ceasing production becomes the best solution because the monopolist will lose more money when producing than when there is no production at all.

In most cases this leads to the total shutdown of a monopolist.