In the above figure, which of the following statements is FALSE if the firm is operating at output level Q2?
A) The output is equivalent to an unregulated monopolist.
B) Economic profits are positive.
C) The price is lower than at an equivalent firm forced by regulators to charge ATC pricing.
D) Average costs would be lowered by expanding output.
C
You might also like to view...
Transfer payments are:
A. spending that transfers resources from the government to individuals. B. when individuals transfer stock ownership in lieu of payment with cash or other liquid assets. C. when individuals transfer cash for payments of a good or service. D. payments that individuals make to the government.
When the AD curve is relatively flat
A. only monetary policy can be used to increase output. B. only fiscal policy can be used to increase output. C. both fiscal policy and monetary policy can be used to increase output. D. neither fiscal policy nor monetary policy can be used to increase output.
We say that goods are complements when they:
A. serve similar-enough purposes that a consumer might purchase one in place of the other. B. are consumed together, so that purchasing one will make a consumer more likely to purchase the other. C. change a consumer's preferences for a good or service. D. can replace something consumers typically purchase at a significantly lower price.
Something is valuable if:
A. someone wants it. B. it was made using resources. C. it is a good or a service. D. it does not involve a trade-off.