In the Short Run, a Monopolist Will Always Shut Down

question 239

Multiple Choice

In the short run, a monopolist will always shut down when

• A)total cost is greater than total revenue at all output levels
• B)total variable cost is greater than fixed cost
• C)total revenue is greater than total variable cost at all output levels
• D)fixed cost is greater than total revenue at all output levels
• E)total variable cost is greater than total revenue at all output levels

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Definitions:

Consent

Agreement or permission for something to happen or someone to do something, often given expressly by all involved parties.

Forced

Action taken under compulsion or pressure, lacking voluntary intention.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with disregard to its truth, which is intended to induce another party to enter into a contract.

Scienter

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.