If Government Forced a Firm to Charge a Price Equal

question 67

Multiple Choice

If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,

• A)new firms would enter the industry.
• B)the firm would be forced to go bankrupt.
• C)positive economic profit would grow even larger.
• D)marginal cost would exceed average cost.

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Definitions:

Substance Abusing Employees

Workers who engage in the excessive or harmful use of drugs or alcohol, potentially impacting their performance and workplace safety.

Alcoholics Anonymous

A worldwide fellowship designed to help individuals who believe they have a drinking problem, offering a program of recovery through mutual support and shared experiences.

Employee Assistance Program

A workplace initiative that provides confidential support, counseling, and assistance to employees facing personal or job-related challenges.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or academic settings.