Which of the Following Is True When the Government Imposes

question 84

Multiple Choice

Which of the following is true when the government imposes a price ceiling on a monopolist?

• A) Marginal revenue becomes horizontal.
• B) Marginal revenue is linear.
• C) Marginal revenue is kinked-horizontal and then downward sloping.
• D) Marginal revenue is kinked-downward sloping and then horizontal.

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Definitions:

Leash Law

Regulations requiring dogs to be kept on a leash in public areas to ensure safety and prevent nuisances.

Legal Realism

A school of thought that suggests laws are created and enforced by the judiciary based on social interests and public policy rather than merely by applying existing legal rules.

Social Conditions

The prevailing cultural, economic, and environmental factors influencing the quality of life and wellbeing of a society or community.

Economic Conditions

The state of an economy at a given time, including factors like inflation, employment rates, and GDP growth.