Whenever a Firm Can Charge a Price Greater Than Marginal

question 67

Multiple Choice

Whenever a firm can charge a price greater than marginal cost,

• A)the firm must be a monopolist.
• B)there is some loss of economic efficiency.
• C)consumers have the ability to choose a close substitute.
• D)the firm will earn economic profits.

---

Definitions:

College

An institution of higher learning that offers undergraduate degrees and, in some cases, master’s degrees, in a variety of subjects.

Social Allergy Effect

A psychological phenomenon where repeated small irritations in close relationships lead to a significant negative reaction.

Annoyed

The feeling of being irritated or bothered by something or someone, often leading to discomfort or frustration.

Habits

Basically, routine behaviors that are performed regularly and often automatically.