Answer to Question #49399 in Microeconomics for susie

Question #49399
If a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing:
marginal revenue and marginal cost
total revenue and total cost
price and minimum average variable cost
total revenue and total fixed cost
1
Expert's answer
2014-12-02T13:22:49-0500
If a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing price and minimum average variable cost, because if the price is below minimum average variable cost, then he can't even cover its variable costs, so he should shut down.
So, the right answer is c) price and minimum average variable cost.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS