What is the shut down rule for monopolist

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Reference no: EM131391963

What is the “shut down rule” for a monopolist that is able to charge each purchaser the maximum amount they would be willing to pay for a product, i.e., a monopolist exercising perfect price discrimination?

A. Shut down unless average revenue equals or exceeds average fixed costs.

B. Shut down if total revenue is less than total variable cost.

C. Offer a particular quantity of a product for sale, but only if average total costs of doing so are less than average revenue.

D. Shut down if it is not possible to operate without incurring a loss.

E. None of the statements in A—D accurately describe the shutdown rule for a monopolist.

Reference no: EM131391963

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