While on Lunch Break, Phyllis Snuffs Out a Fire That

question 15

Multiple Choice

While on lunch break, Phyllis snuffs out a fire that started in the bagel toaster. A recommended statement of praise for Phyllis would be ________

• A)"From now on your nickname will be 'Fabulous Phyllis the firefighter.'"
• B)"Nice job. You probably saved the company from a $10,000 insurance claim."
• C)"You did the right thing, but helping out is part of every employee's job."
• D)"Much appreciated, but are you sure you didn't start the fire?"

---

Definitions:

Monopoly Profit

The excess profits a monopoly firm earns over what it would earn if the industry were perfectly competitive, due to its control over the market supply and pricing.

Profit Maximizing

A strategy or point where a firm or individual produces at a level where the difference between total revenue and total cost is the greatest.

P = MC

The condition where price equals marginal cost, often used to determine the optimal level of output in perfect competition.

Monopolist

A sole provider of a good or service in a market, having significant control over prices and market conditions.