If a Monopolist That Does Not Practice Price Discrimination Is

question 160

Multiple Choice

If a monopolist that does not practice price discrimination is operating at an output level where price equals average total cost,we can conclude that _____

• A)its economic profit is $0.
• B)it is not maximizing profit.
• C)it should go out of business in the long run.
• D)it is not earning a normal profit.
• E)it should shut down in the short run.

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment schedule and interest rates.

Merchandise

Goods or products that are bought and sold in commerce, typically in a retail environment.

Break-Even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Monthly Interest Rate

The interest rate quoted or applied on a monthly basis, often used in loans or savings calculations.