[amp_mcq option1=”Break-even point” option2=”AR > AC” option3=”AR < AC\" option4=\"All of these\" correct=\"option1\"]<\/p>\n
The correct answer is: A. Break-even point.<\/p>\n
A monopolist firm is a firm that is the only seller of a good or service in a market. This means that the firm has no competition and can therefore set its own prices. In the short run, a monopolist firm’s equilibrium is at the point where its average revenue (AR) equals its average cost (AC). This is because the firm will not produce any units of output if its AR is less than its AC, and it will not produce any more units of output if its AR is greater than its AC. The break-even point is the point at which the firm’s total revenue equals its total cost. This is the point at which the firm makes no profit or loss.<\/p>\n
Option B is incorrect because AR can be greater than AC, equal to AC, or less than AC at the equilibrium point. Option C is incorrect because AR can be greater than AC, equal to AC, or less than AC at the equilibrium point. Option D is incorrect because only option A is correct.<\/p>\n","protected":false},"excerpt":{"rendered":"
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