A Firm That Realizes Minimum Average Costs at an Output

question 1

Multiple Choice

A firm that realizes minimum average costs at an output rate sufficient to satisfy the entire market is an example of

• A) monopolistic competition.
• B) natural monopoly.
• C) nonprice competition.
• D) the crowding-out effect.
• E) supply-side economics.

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Definitions:

Dividends

are payments made by a corporation to its shareholders, typically from profits earned.

Tax Rate

The percentage of income that is paid to the government as tax.

Net Income

The amount of profit a company has left after all expenses, taxes, and costs have been subtracted from total revenue.