Which of the Following Statements Best Describe the Price, Output

question 115

Multiple Choice

Which of the following statements best describe the price, output, and profit conditions of monopoly?

• A) Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long-run.
• B) Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
• C) In the long-run, positive economic profit will be earned.
• D) All of the above are true.

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Definitions:

Decimal Equivalent

The decimal form representation of a fraction or percentage.

Percent Equivalent

The percentage representation of a fraction or decimal.

Fraction

A fractional amount that signifies a portion of a whole, distinct from an integer.

Decimal Equivalent

A decimal number that represents the same value as a given fraction or percentage.