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MArishka [77]
2 years ago
8

A manager of a monopoly firm notices that the firm is producing output at a rate at which average total cost is falling but is n

ot at its minimum feasible point. the manager argues that surely the firm must not be maximizing its economic profits. the​ manager's argument is
Business
1 answer:
bogdanovich [222]2 years ago
4 0
<span>It is due to the profit maximising rule in a monopoly is Marginal Revenue=Marginal Costs (MR=MC). If the price or the output is below the ATC then the firm is operating at a loss; however, should shut down production until price or output is less than AVC.</span>
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