Which of the Following Statements Best Describes the Price, Output

question 98

Multiple Choice

Which of the following statements best describes the price, output, and profit conditions of monopoly?

• A) Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long run.
• B) Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
• C) In the long run, positive economic profit will be eliminated.
• D) None of the above.

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Definitions:

Surface Temperature

Surface temperature is the temperature near the surface of the Earth, which varies due to factors like sunlight, atmospheric conditions, and geographic location.

Ozone

A molecule composed of three oxygen atoms, found in the Earth's stratosphere, where it forms a layer that protects life by blocking most of the sun's harmful ultraviolet radiation.

Stratosphere

The second major layer of Earth's atmosphere, just above the troposphere and below the mesosphere, known for containing the ozone layer.

Antarctica

The Earth's southernmost continent, containing the geographic South Pole, known for its extensive ice sheets and cold climate.