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Commerce · Q1092

Economics

Graduate and Post Graduate · Commerce · question 1092

Q1092

In the short-run, when a simple monopoly firm attains equilibrium and earns only normal profit, its level of output will correspond to:

A.
Lowest average cost
B.
Average cost above optimum level of output
C.
Average cost equals marginal cost
D.
Marginal cost much below average cost
Answer

Answer: Option D

Solution

Answer: Option D
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