The profit of a monopolist can be eliminated where price equals

Economics

JAMB 2011

A. AFC
B. MC
C. AC
D. AVC

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Correct Answer: Option B

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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The profit of a monopolist can be eliminated where price equals

Correct Answer: Option B

Explanation

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