If a monopolist is producing at an output rate at which P = ATC, then
A. it is minimizing its losses.
B. its economic profit will be zero.
C. its economic profit will be positive.
D. it is maximizing its profits.
Answer: B
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Federal law required that no two Federal Reserve Board Governors come from the same
A) state. B) political party. C) industry. D) Federal Reserve district.
An increase in investment, combined with an increase in imports, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
Externalities can be positive, as well as negative.
A. True B. False C. Uncertain
Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion in government services, and has $4 trillion of exports and $5 trillion of imports. GDP would be:
A. $19 trillion. B. $21 trillion. C. $24 trillion. D. $29 trillion.