Question:

In the short run, a monopolist’s profits:

A.

may be positive, negative, or zero.

B.

are positive because of the monopolist\s market power.

C.

are positive if the monopolist\s elasticity of demand is less than 1.

D.

are positive if the monopolist\s selling price is above average variable cost.

Answer» a. may be positive, negative, or zero.