If an Average Cost Pricing Rule Is Imposed on the Firm

question 5

Multiple Choice

If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be

• A) zero.
• B) $150.
• C) $50.
• D) $250.

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Definitions:

Laryngopharynx

The part of the pharynx that lies inferior to the epiglottis and extends to the location where the esophagus and trachea diverge.

Oral Cavity

The mouth, an opening in the body where food intake occurs, beginning the process of digestion and housing many taste buds.

Esophagus

The tube that connects the throat (pharynx) with the stomach, transporting swallowed food and liquids.

Sphincters

Circular muscles that constrict passages or openings in the body, regulating the flow of substances within various organs.