If a Monopoly Is Producing with a Normal Profit, Then

question 48

Multiple Choice

If a monopoly is producing with a normal profit, then:

• A) it will be operating at a point where its long run average cost will be at a minimum.
• B) it will be operating at a point that lies on the falling portion of long run average cost.
• C) it will be operating at a point where its long run average cost will be increasing.
• D) it will be operating at a point where its short run average cost will be at a minimum.
• E) it will be operating at a point where its marginal revenue will exceed its marginal cost.

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Definitions:

Misperception

An incorrect understanding or interpretation of information, events, or situations.

Rods

Visual receptors that respond to dim light.

Cones

Visual receptors involved in color vision.

Retina

Neural tissue lining the back of the eyeball’s interior, which contains the receptors for vision.