Suppose a Monopolist Has Costs Such That When Output Is

question 33

Multiple Choice

Suppose a monopolist has costs such that when output is 500 units per hour, average costs are $3. If the monopolist is regulated by a policy of average-cost pricing, the monopolist will charge a price of

• A) $3.
• B) $3 only if the quantity demanded is 500 units per hour at a price of $3.
• C) $3 only if the quantity demanded is greater than 500 units at a price of $3.
• D) $3 only if the quantity demanded is less than 500 units per hour at a price of $3.

---

Definitions:

Group Polarization

The tendency of a group to make decisions that are more extreme than the initial inclination of its members.

Religious Beliefs

The faith or convictions related to the supernatural, sacred, or divine, often guiding morals, values, and practices.

Moderately Religious

Characterizing an individual's religious belief and practice as being between highly religious and nonreligious, often implying a balanced approach.

Social Loafing

The phenomenon where individuals put forth less effort when working in a group than when working alone, due to perceived diffusion of responsibility.