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:

Real Property

Land and anything permanently attached to the land, such as buildings, houses, stationary mobile homes, fences, and trees.

Statute of Frauds

A judicial principle stipulating that specific contract categories must be written and signed by the accountable party to be legally binding.

Signature Requirement

The necessity for a person's handwritten or digital mark to verify and authenticate a document.

Interest in Land

A legal right or claim to real estate property, including ownership or use rights.