In the short run, a monopolist will always shut down when
a. total cost is greater than total revenue at all output levels
b. total variable cost is greater than fixed cost
c. total revenue is greater than total variable cost at all output levels
d. fixed cost is greater than total revenue at all output levels
e. total variable cost is greater than total revenue at all output levels
E
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Interest rates are positive because
A) people prefer future consumption over current consumption. B) people prefer current consumption over future consumption. C) usury laws require rates to be very high. D) banks are not competitive.
Suppose that initially, supply is given by the equation Qs = 4P ? 16. If, as a result of lower production costs, the quantity supplied increases by 4 at every price, the new supply equation would be:
A. Qs = 4P ? 12. B. Qs = 8P ? 16. C. Qs = 4P ? 20. D. Qs = P ? 16.
Which is true of a price discriminating pure monopolist?
A. P > MR for the last unit sold B. Profit will be higher than in the nondiscriminating case C. The average price will be higher than in the nondiscriminating case D. Allocative inefficiency will be greater than in the nondiscriminating case
Everything else equal, an appreciation of the dollar will:
A) cause the net exports of the U.S. to increase. B) cause the U.S. GDP to fall. C) not affect U.S. GDP. D) cause the U.S. GDP to increase.