A Monopolist Will Shut Down in the Short Run If

question 150

Multiple Choice

A monopolist will shut down in the short run if:

• A) price exceeds marginal revenue.
• B) price is less than marginal revenue.
• C) price is less than average total cost.
• D) total revenue is less than total variable cost.

---

Definitions:

Credit Memorandum

A document issued by a seller to acknowledge a reduction in the amount that a buyer owes, often due to a return or refund.

Cash Account

An account reflecting the amount of cash available, including all receipts and payments of cash.

Bank Statement

A report sent by a bank to a customer indicating the previous balance, ATM transactions, nonsufficient funds, individual checks processed, individual deposits received, service charges, and ending bank balance.

Outstanding Checks

Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement.