If a Monopolist Sets Her Output Such That Marginal Revenue

question 2

Multiple Choice

If a monopolist sets her output such that marginal revenue, marginal cost and average total cost are equal, economic profit must be:

• A) negative.
• B) positive.
• C) zero.
• D) indeterminate from the given information.

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Definitions:

Positive Instrumentality

the belief that performing well will lead to the attainment of desired outcomes or rewards.

Self-efficacy Theory

A psychological concept suggesting that an individual's belief in their ability to perform tasks leads to better performance and outcomes.

Social Learning Theory

A theory that posits individuals learn new behaviors and attitudes through observation of others and interactions within their social context.

Alderfer's ERG Theory

A human needs theory in organizational behavior that categorizes human needs into three groups: Existence, Relatedness, and Growth.