If the Monopoly Firm's Marginal Cost Curve Is Either Horizontal

question 85

Multiple Choice

If the monopoly firm's marginal cost curve is either horizontal or upward sloping, it follows that its marginal revenue curve will cut its marginal cost curve at a __________ level of output than where its demand curve cuts its marginal cost curve. It also follows that if the firm were to produce the quantity of output consistent with where its demand curve cut its marginal cost curve, the firm would be __________.

• A)lower; earning profits
• B)lower; resource-allocative efficient
• C)higher; productive efficient
• D)lower; minimizing costs
• E)none of the above

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the accounts for the next period.