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Production will continue in the short run as long as the price exceeds the average variable cost. If the price exceeds average variable cost but
Production will continue in the short run as long as the price exceeds the average variable cost. If the price exceeds average variable cost but is less than average total cost, then the monopolist will produce at a loss. However, if the price exceeds average total cost, the monopolist will then make a profit. In the long run, the monopolist can earn positive economic profits but will shut down, if it continues suffering losses. Your thoughts
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