The monopolist produces at the minimum point of her ATC curve (LO2) a) all the time c) some of the time b) most of the time d) none of the time

A monopolist is a firm that has exclusive control over the production and sale of a certain product or service due to the absence of competition. The Average Total Cost (ATC) curve represents the average amount it costs the monopolist to produce each unit of output at different levels of production. The minimum point of the ATC curve is the optimal production level at which average costs are minimized.

A monopolist's goal is to maximize profits, which is achieved when Marginal Revenue (MR) equals Marginal Cost (MC). This is because the firm will produce an extra unit as long as the additional revenue received is greater than the additional cost of production. Since the shape of the ATC curve is typically U-shaped, the minimum point of the ATC curve occurs when the ATC is equal to MC.

Now we need to compare the profit-maximizing condition (MR = MC) with the minimum point of the ATC curve (ATC = MC). In scenarios where the profit-maximizing quantity corresponds to the minimum point of the ATC curve, MR will be equal to MC and ATC at the same time.

a) all the time: This is not correct because the occurrence of MR = MC and ATC = MC at the same time does not always occur for a monopolist. Market conditions, demand elasticity, and the structure of costs all influence the monopolist’s production choices. c) some of the time: This answer is correct because there will be situations in which the profit-maximizing quantity aligns with the minimum point of the ATC curve. However, as mentioned above, various factors determine the likelihood of this occurring, so it is not guaranteed to happen. b) most of the time: This answer is not correct because there is no reason to believe that the profit-maximizing quantity typically aligns with the minimum point of the ATC curve. Again, this depends on various factors, and it could occur occasionally but not most of the time. d) none of the time: This is incorrect because, as explained earlier, there will be cases where a monopolist's profit-maximizing quantity coincides with the minimum point of the ATC curve, even though it is not guaranteed to happen all the time or most of the time. Therefore, the correct answer is c) some of the time.