In the long run hospitals will continue to remain open as long as: a

Economics May 02, 2021

In the long run hospitals will continue to remain open as long as:
a. marginal revenues will cover marginal costs. b. they are covering average costs.* c. they are covering fixed costs. d. Answers (b) and (c) are correct.

Expert Solution

Answer

a .

Explanation

Since the profit-maximizing condition of the monopoly and monopolistic firms are

MR=MC

Hence it can be said that The profit of a firm is maximized when marginal revenue is equal to marginal cost.

So, The correct option is A "marginal revenues will cover marginal costs".

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