Preference

Question: A monopolist will earn normal profit when—

  1. a.
    Average revenue(AR) = Marginal cost(MC)
  2. b.
    Average cost(AC) = Average revenue(AR)
  3. c.
    Average revenue(AR) = Marginal revenue(MR)
  4. d.
    Average cost(AC) = Marginal revenue(MR)
  5. e.
    None of the above
Answer: b
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