The Following Figure Shows the Marginal Cost [MC],average Cost [AC],marginal

question 103

Multiple Choice

The following figure shows the marginal cost [MC],average cost [AC],marginal revenue [MR],and demand curves for a profit-maximizing monopolist.
Figure 11-2
-Refer to Figure 11-2.If the government wishes to regulate the monopoly firm by setting the price at OB in the market,the monopolist will:

• A)produce the efficient quantity of output.
• B)have to shut down to cut losses.
• C)continue to earn economic profits.
• D)earn a higher profit.

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Definitions:

Hemispheric Specialization

The concept that each hemisphere of the brain is specialized for certain functions, such as language in the left hemisphere and spatial abilities in the right.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in higher brain functions such as thought, language, and memory.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Cingulate Cortex

A part of the brain situated in the medial aspect of the cerebral cortex, involved in emotional processing, learning, and memory.