Use the following graph for a pure monopoly operating in the short run to answer the next question.
At the profit-maximizing level of output, this firm ________.
A. faces a total fixed cost equal to the area of BEFC
B. should shut down
C. generates a loss per unit equal to DE
D. generates an economic profit equal to the area of ABED
Answer: C
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Extractive institutions:
A) privilege many at the expense of a few. B) privilege a few at the expense of many. C) are restricted to command economies. D) are restricted to market economies.
Jane supports herself at college by working in a bookstore earning $300 a month, which she spends entirely every month. If she gets a salary increase of $100 a month, she spends $90 more dollars on consumption expenditure. Jane's MPC is equal to
A) 0.10. B) 0.90. C) 1.00. D) 0.50. E) $90.
How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection, in what country would you expect to have a longer life expectancy, the United States or India? Explain
What will be an ideal response?
The expected effects of a tighter monetary policy are
a. lower real interest rates. b. exchange rate depreciation. c. lower inflation. d. All of the above are correct.