If Government Forced a Firm to Charge a Price Equal

question 67

Multiple Choice

If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,

• A)new firms would enter the industry.
• B)the firm would be forced to go bankrupt.
• C)positive economic profit would grow even larger.
• D)marginal cost would exceed average cost.

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Definitions:

Target Market

A specific group of consumers at whom a company aims its products and marketing efforts, based on shared characteristics or needs.

Marketing Metric

Quantitative measures used to evaluate, compare, and track the effectiveness or performance of marketing activities.

Marketing Activity

Actions or tasks undertaken by a company to promote its products or services and engage with its target market.

Marketing Dashboard

A visual representation tool that allows managers to monitor the performance of marketing metrics and key performance indicators (KPIs) at a glance.