A (non-price discriminating) monopolist with zero marginal cost but recurring fixed costs may end up not producing even if it would be efficient for him to produce.
Answer the following statement true (T) or false (F)
True
Rationale: Efficiency implies that production should occur so long as the consumer surplus at price equal to zero exceeds the recurring fixed costs. But a non-price discriminating monopolist cannot capture all of consumer surplus -- so it is possible that recurring fixed costs are higher than the monopoly profit in the absence of fixed costs and lower than consumer surplus at p=0. In that case, the monopolist will not produce but it would be efficient to produce.
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