A manager of a monopoly firm notices that the firm is producing output at a rate at which average total cost is falling but is not at its minimum feasible point. The manager argues that surely the firm must not be maximizing its economic profits. Is this argument correct?

A dominance will be when one organization has a dominant position in an industry or sector with both the purpose of banning all those other potential competitors. Monopolies are often discouraged in free-market nations. Because users do have choice, they are considered as lead to market manipulation and declining product.

The boss believes that the company's profit margin cannot possibly be maximized. The boss claims that its organization cannot potentially have maximizing its profit margin.

Yes, a manager's argument is right in terms of economic principles. A monopoly firm can maximize its profit by producing the output where marginal revenue equals marginal cost. A goal is to maximize profit if it is not functioning so at maximum level. As a result, the argument - based that now the corporation cannot possibly be maximize its net income.