-Which of the Following Is True for a Profit Maximizing

question 223

Multiple Choice

-Which of the following is true for a profit maximizing monopolist?

• A) Marginal cost is always less than average total cost.
• B) In the long run, the firm's economic profit equals zero.
• C) In the short run, the firm will shut down if its marginal cost is less than its average variable cost.
• D) In the short run, the firm can make an economic profit even if its marginal cost is less than its average variable cost.

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Definitions:

Chloroplasts

Organelles found in plant cells and some algae that conduct photosynthesis, converting light energy into sugar.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, producing oxygen as a byproduct.

Stroma

Region within a chloroplast that surrounds the grana; contains enzymes involved in the synthesis of carbohydrates during the Calvin cycle of photosynthesis.

Chloroplast

Membrane-bound organelle in algae and plants with chlorophyll-containing membranous thylakoids; where photosynthesis takes place.