If the Average Total Cost Curve Is Always Above the Demand

question 85

Multiple Choice

If the average total cost curve is always above the demand curve for a monopolist:

• A) the profits of the monopolist will be large.
• B) the monopolist must be producing inefficiently.
• C) the monopolist will suffer economic losses.
• D) entry will occur, forcing the monopolist to reduce price and expand output.

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Definitions:

Given

A pre-established or assumed condition, fact, or premise in discussions, analyses, or mathematical problems.

Imferon

A brand name for iron dextran, which is used to treat iron deficiencies and iron deficiency anemia by replenishing body iron stores.

Z-track

A technique used in intramuscular injection to prevent medication leakage and minimize tissue irritation by displacing skin and tissue layers.

Irritation

A condition of inflamed or painful reaction of the skin, eyes, mucous membranes, or gastrointestinal tract.