Answer to Question #49399 in Microeconomics for susie

Question

If a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing:
marginal revenue and marginal cost
total revenue and total cost
price and minimum average variable cost
total revenue and total fixed cost

Answer 1

If a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing price and minimum average variable cost, because if the price is below minimum average variable cost, then he can't even cover its variable costs, so he should shut down.
So, the right answer is c) price and minimum average variable cost.