Help me out with my Microeconomics HW! economics homework?

Question

True or False: If a monopolist's average total cost curve is above the market demand curve for all levels of output, the monopolist will still make a profit.

Thanks!

Answer 1

False.  The monopolist cannot charge a price higher than the demand curve for any given quantity, so price will be below average cost for all quantities.  When price is below AC, the monopolist has a loss.