A Monopolist Earns an Economic Profit Only When

question 17

Multiple Choice

A monopolist earns an economic profit only when:

• A)average total cost equals price.
• B)marginal cost equals price.
• C)marginal revenue equals price.
• D)average total cost is less than price.

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Definitions:

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Repeat Customers

Individuals who make purchases or avail services from the same business or seller on multiple occasions, indicating loyalty or satisfaction.

Franchiser

A business entity that grants a license to a third party for the conducting of a business under the franchiser's marks.

Product Quality

The perceived value or characteristics of a product that meet or exceed the expectations of its users.