JAMB Economics 2011 Objective — Question 22

Question 22 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.

The profit of a monopolist can be eliminated where price equals

A. A. MC
B. B. ACCorrect
C. C. AVC
D. D. AFC

Explanation

When price and average cost (AC) are equal, only normal profit is made, eliminating any abnormal/monopoly profit.

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