c Which of the following is true A A monopolist produces on

(c) Which of the following is true?

(A) A monopolist produces on the inelastic portion of its demand.
(B) A monopolist always earns an economic pro t.
(C) The more inelastic the demand, the closer marginal revenue is to price.
(D) In the short run, a monopoly will shut down if P < AV C.

Solution

option D) In the short run, a monopoly will shut down if P < AV C. is correct. if a monopolist is unable to cover the variabnle costs in the short run, then he cannot continuee production.