Exhibit 13-3 a Monopolist

question 14

Multiple Choice

Exhibit 13-3 A monopolist
-In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to average total cost, then:

• A) this firm would earn excess profit.
• B) total revenue would equal marginal revenue.
• C) the firm would suffer losses.
• D) revenue would just be sufficient to cover costs.
• E) revenue would just be sufficient to cover marginal cost.

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Definitions:

Unit of Resource

A specific quantity of a resource or input used in the production of goods or services.

Deforestation

The removal of a forest or stand of trees from land which is then converted to a non-forest use, often resulting in ecological imbalance.

Forest Cover

The proportion of land area that is covered by forests, which is crucial for biodiversity, climate regulation, and ecosystem services.