In the short run, a monopolist will shut down if it is producing a level of output wheremarginal revenue is equal to short-run marginal cost and price is:

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Question:

In the short run, a monopolist will shut down if it is producing a level of output wheremarginal revenue is equal to short-run marginal cost and price is:

A.

less than average variable cost

B.

greater than average variable cost.

C.

less than average total cost

D.

greater than average total cost

Answer» a. less than average variable cost

Note: The above multiple-choice question is for all general and Competitive Exams in India.