In the Short Run,if a Monopoly Is Forced to Charge

question 34

Multiple Choice

In the short run,if a monopoly is forced to charge a price equal to marginal cost:

• A)output will fall.
• B)the deadweight loss will decrease.
• C)consumer surplus will decrease.
• D)other firms will enter the industry.

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Definitions:

Cost of Goods Available

The total cost of goods a company has to sell during a specific period, calculated by adding the beginning inventory to the cost of goods purchased.

Purchase Returns

Refers to the process of returning goods previously bought to the supplier due to various reasons like defects or dissatisfaction.

Freight-In

The cost associated with transporting goods into a business, which is often added to the cost of inventory.

Cost of Goods Sold

The direct financial outlays related to producing the products that a company sells.