A monopolist would not be able to make a positive profit at any price output combination when
A) marginal cost is less than average total cost for one more unit of output.
B) the average variable cost curve is everywhere above the marginal revenue curve.
C) the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve.
D) the average total cost curve is everywhere above the demand curve.
Answer: D
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Suppose Lisa spends all of her money on books and coffee. When the price of coffee decreases, the
A) substitution effect on coffee is positive, and the income effect on coffee is positive. B) substitution effect on coffee is ambiguous, and the income effect on coffee is ambiguous. C) substitution effect on coffee is positive, and the income effect on coffee is ambiguous. D) substitution effect on coffee is ambiguous, and the income effect on coffee is positive.
Mario's Pizza wants to prevent Angelo's Pizza from entering the pizza delivery market. If Mario's Pizza advertises that it will always undercut any competitor's price, the effect of advertising ________ Mario's Pizza's profits due to its cost and ________ Mario's Pizza's profits due to a(n) ________ in its demand.
A) increases; increases; increase B) decreases; decreases; increase C) decreases; decreases; decrease D) decreases; increases; increase
The Gramm-Leach-Bliley Act (GLBA), passed by the U.S. Congress in the year 1999, allows commercial banks to:
a. operate in all foreign countries. b. open new branches in Cuba. c. expand their business into other areas of finance, including insurance and selling securities. d. raise reserve requirements for other financial institutions. e. eliminate unit banking.
Karen Chow was laid off her assembly line job last month and expects to be called back to work within six weeks. She is __________ unemployed.
A. frictionally B. structurally C. cyclically D. seasonally