It is possible, though unlikely, that a monopolist could find that the intersection of MR = MC occurs at the minimum of the ATC curve as shown to the right. In this rare situation a monopolist would find that producing the productively efficient amount is also profit maximizing.

    There are no market forces leading to this result and threats of entry and exit don't lead to this result either. It would only occur entirely by chance, so, in general, a monopolist cannot be expected to be productively efficient.

Click Here if you don't see topics listed to the left and below.