If Marginal Cost Is Above Average Total Cost, Average Total

question 124

True/False

If marginal cost is above average total cost, average total cost must be falling, whether marginal cost is rising or falling.

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Definitions:

Pure Monopolist

A single seller in a market who has the power to control market prices and output without any competition.

Unregulated Monopoly

A market structure where a single seller controls the entire market for a product or service, with no governmental restrictions in place.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

Profit-maximizing

A company's goal to achieve the highest possible profit where the marginal cost of production is equal to the marginal revenue from sales.