In the Short Run, a Monopolist Will Shut Down When

question 199

Multiple Choice

In the short run, a monopolist will shut down when

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

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Definitions:

Surfactant

A substance that reduces surface tension, in biological systems, it primarily refers to a substance in the lungs that prevents the air sacs from collapsing.

Lanugo

Fine, soft hair that covers the body of a fetus, which is usually shed before birth.

Cleavage

A process of cell division in the early embryonic stage that leads to the formation of a multicellular embryo.