Which of the Following Statements Best Describes the Price, Output

question 33

Multiple Choice

Which of the following statements best describes the price, output, and profit conditions of monopoly?

• A) Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long run.
• B) Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
• C) In the long run, positive economic profit will be eliminated.
• D) None of these.

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Definitions:

Cross Cultural Influences

The impact that differing cultural backgrounds and practices have on various aspects of human behavior, communication, and interaction.

Voluntary Reaching

A developmental milestone where infants intentionally extend their arm and hand towards an object to grasp it.

Fine Motor Development

The ability to control small movements of the fingers, such as reaching and grasping.

Gross Motor Development

The ability to control large movements of the body, such as walking and jumping.