Question 1
A monopolist is not guaranteed positive economic profits solely because it is a monopoly since there may be no output for which
Question 2
The Exclusive Gift Company has a monopoly over the sale of gold hula hoops. This company is currently pricing and producing where marginal revenue is equal to marginal cost. It is selling 50 gold hula hoops at a price of $5,000 each. Total costs for the company are $300,000 of which fixed costs are $100,000. You are hired as an economic consultant to this company. You should advise this monopolist to
Answer 1
TR >Answer 2
produce in the short run but exit the industry in the long run if conditions do not change.