A Pure Monopolist Is Producing an Output Such That ATC

question 232

Multiple Choice

A pure monopolist is producing an output such that ATC = $9, P = $11, MC = $5, MR = $6, and AVC = $4.50. This firm is realizing

• A)an economic loss that could be reduced by producing more output.
• B)an economic loss that could be reduced by producing less output.
• C)an economic profit that could be increased by producing more output.
• D)an economic profit that could be increased by producing less output.

---

Definitions:

C-Shaped Cartilaginous Rings

The horseshoe-shaped structures of cartilage found in the trachea that provide structural support and keep the airway open.

Cilia

Microscopic, hair-like structures on the surface of cells that move rhythmically to transport substances or facilitate movement.

Respiratory System

Organ system of humans that includes the lungs and associated structures; involved in the exchange of gases; helps control pH.

Lung Cancer

Uncontrolled cell growth that affects any component of the respiratory system.