When Would a Monopolist Shut Down in the Short Run

question 3

Multiple Choice

When would a monopolist shut down in the short run?

• A) if price is less than marginal revenue
• B) if total revenue is less than total variable cost
• C) if price exceeds marginal revenue
• D) if price is less than average total cost

---

Definitions:

Absolute Advantage

The capacity for a nation, person, corporation, or area to manufacture a product or render a service at a more affordable per-unit expense than what any other party can achieve.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than other entities, leading to specialized production and trade benefits.

Toy Cars

Small-scale replicas of automobiles, typically designed for play or collection.

Dinosaur Figures

Toy replicas of dinosaurs, often used for educational or recreational purposes.