A monopolist may enjoy abnormal profit only if its
- marginal cost exceeds marginal revenue
- demand curve is perfectly elastic
- expenditure on advertisement increases
-
price exceeds average total cost
The correct answer is: D
Explanation
A monopolist may enjoy abnormal profit only if its price exceeds average total cost. This is because a monopolist is the only producer in the market, and they can therefore set the price of their product. If the price exceeds average total cost, the monopolist will be making a profit.