Advertisement Remove all ads

A Monopolist Firm Can Earn Losses in the Short Run If the Price is Less than the Minimum of Ac. but If the Price Falls Below the Minimum of Avc, Then the Monopolist Will Stop Production. the Firm Will - Economics

Short Note

Will the monopolist firm continue to produce in the short run if a loss is incurred at the best short run level of output?

Advertisement Remove all ads

Solution

A monopolist firm can earn losses in the short run if the price is less than the minimum of AC. But if the price falls below the minimum of AVC, then the monopolist will stop production. The firm will continue to produce when the price is in between the minimum of AVC and the minimum of AC.

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

NCERT Class 12 Economics Introductory Microeconomics
Chapter 6 Non-Competitive Markets
Exercise | Q 8 | Page 101
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×