If the Average Total Cost Curve Is Always Above the Demand

question 159

Multiple Choice

If the average total cost curve is always above the demand curve of a monopolist,

• A) the profits of the monopolist will be large.
• B) the monopolist must be producing inefficiently.
• C) even a monopolist will suffer economic losses.
• D) entry will occur, forcing the monopolist to reduce price and expand output.

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Definitions:

Transcribe

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Interviews

A method of gathering information through direct verbal interaction, typically involving one person asking questions and another responding, used in various contexts like research and employment.

Bias

An opinion held by the researcher that might affect the research or analysis.

Patterns

Recurring characteristics or events that can predict future occurrences or trends.