Figure 10-10 -Refer to Figure 10-10. the Graph Represents a Market in a Market

question 315

Multiple Choice

Figure 10-10
-Refer to Figure 10-10. The graph represents a market in which

• A)there is no externality.
• B)there is a positive externality.
• C)there is a negative externality.
• D)The answer cannot be determined from inspection of the graph.

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Definitions:

Pure Monopolists

Firms that are the sole provider of a product or service in the market, lacking any competition and controlling prices.

Economic Profits

The surplus after all the costs of production (including opportunity costs and explicit costs) have been subtracted from total revenues, indicating profitability beyond normal expectations.

Average Total Cost

The total cost of production divided by the quantity produced, representing the per-unit cost of production.

Pure Monopolist

A single supplier in a market, with no close substitutes for its product, giving it significant control over prices.