Monopoly 3 Loss Minimization
Yes, monopolists can have losses,
- demand for its product could fall
- costs could rise
- governments might demand they make losses (while providing subsidies)
Notice, the firm is producing at profit max, MR = MC, but the ATC is higher than the price it can sell its good.
2012 AP Microeconomics Exam, FRQ, Q1
Monopoly video - Louis CK - Monopoly Loss
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