If a Monopolist Is Forced to Set Price Equal to Average

question 112

Multiple Choice

If a monopolist is forced to set price equal to average total cost, economic profit

• A)will be negative, and the monopolist may go out of business
• B)will be zero
• C)will be positive
• D)will be negative, and the firm will stay in business if there are significant fixed costs
• E)may be positive, negative, or zero

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Definitions:

Manage Risk

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Initiating Structure

A leadership behavior that involves the organization and definition of work tasks, establishing clear patterns of organization, communication, and ways of getting tasks done.

Leadership Behavior

The actions, decisions, and mannerisms exhibited by an individual in a leadership position that influence the motivation and performance of others.

Specific

Clearly defined or identified; distinct from others.