A monopolistic firm will shut down if
A) P < ATC for every level of output.
B) P > ATC for every level of output.
C) P > AVC for every level of output.
D) P < AVC for every level of output.
Answer: D
You might also like to view...
Which of the following best explains the source of consumer surplus for a particular product?
a. Many consumers pay prices that are greater than the equilibrium price of the product. b. Many consumers would be willing to pay more than the market price for the product. c. Many consumers think the market price of the product is greater than its cost. d. Many consumers think the demand for the product is elastic.
Checkable deposits are money because they are:
A. acceptable in exchange. B. legal tender. C. fiat money. D. token money.
Suppose an insurance company determines that the average annual malpractice cost is $10,000 for reckless lawyers and $500 for careful lawyers. If 10% of the lawyers insured by the company are reckless, the company will earn zero economic profit if the price of insurance is:
A. $500. B. $1,450. C. $5,250. D. $10,000.
A search good is a product
A. with qualities that consumers lack the expertise to assess without assistance. B. that an individual must consume before the quality can be established. C. that emphasizes the features of its product. D. with characteristics that enable an individual to evaluate the product's quality in advance of a purchase.