If a Monopoly Produces Where Marginal Revenue Is Equal to Marginal

question 1

Multiple Choice

If a monopoly produces where marginal revenue is equal to marginal cost then:

• A) if short run average cost is less than price, the monopoly will have a normal profit.
• B) if short run average cost is equal to price, the monopoly will have a normal profit.
• C) the monopoly is guaranteed to make a normal profit.
• D) if short run average cost is greater than price, the monopoly will have a normal profit.
• E) if average variable cost is greater than price, the monopoly will have be operating at a loss.

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Definitions:

Cognitive Theorist

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