If There Is Just One Producer in an Industry Where

question 120

Multiple Choice

If there is just one producer in an industry where the average total cost curve declines throughout the output range up to where it intersects the industry demand curve:

• A) the industry will be a natural monopoly.
• B) charging a price equal to marginal cost would entail economic losses for the producer.
• C) charging a price equal to average cost would entail a welfare cost.
• D) All of the above would be true.

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Definitions:

Compelling and Useful

Characteristics of information or resources that are both persuasive and beneficial to the user.

Realistic

Pertaining to the representation of objects, situations, or actions in a way that is true to life, or having an acceptance of the situation as it is.

Transtheoretical Model

A theoretical model of behavior change that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual.

Sober

The state of not being under the influence of alcohol or drugs.