A monopolistic firm will shut down if A. P > ATC for every level of output....

Question

Question

A monopolistic firm will shut down if

A.

P > ATC for every level of output.

B.

P < AVC for every level of output.

C.

P < ATC for every level of output.

D.

P > AVC for every level of outpu

Answer 1

Answer #1

The answer is option b- P < AVC for every level of output

A monopolist should shut down when price (average revenue) is less than average variable cost for every output level

Answer 2

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A monopolistic firm will shut down if A. P​ > ATC for every level of output....