Will the monopolist continue to produce in the long run if a loss is incurred at the best long run level of out put?

Question

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.

kratos · Answer 1 · 2020-07-24T20:43:34+0000

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.

Will the monopolist continue to produce in the long run if a loss is incurred at the best long run level of out put?

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Will the monopolist continue to produce in the long run if a loss is incurred at the best long run level of out put?

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1 Answer

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