A. AFC
B. MC
C. AC
D. AVC
Correct Answer:
Option B – MC
Explanation
In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. When the price is equal to marginal cost, the monopoly profit is eliminated.
A. AFC
B. MC
C. AC
D. AVC
Correct Answer:
Option B – MC
Explanation
In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. When the price is equal to marginal cost, the monopoly profit is eliminated.
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