-A Monopolist Would Not Be Able to Make a Positive

question 239

Multiple Choice

-A monopolist would not be able to make a positive profit at any price output combination when

• A) marginal cost is less than average total cost for one more unit of output.
• B) the average variable cost curve is everywhere above the marginal revenue curve.
• C) the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve.
• D) the average total cost curve is everywhere above the demand curve.

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Definitions:

Initial Value Method

A method of accounting for investments, where the investment is recorded at its original cost without recognizing subsequent changes in fair value.

Equipment Account

An account on the balance sheet representing the cost of equipment owned by a company, less any accumulated depreciation.

Voting Stock

Shares that give the holder the right to vote on company matters.

Book Value

The remaining value of a corporation's assets after subtracting its debts, as noted in the balance sheet.