In the Short Run, a Monopolist Will

question 23

Multiple Choice

In the short run, a monopolist will:

• A) shut down if price equals average total cost.
• B) shut down if price is less than average total cost.
• C) shut down if price is less than average variable cost.
• D) never shut down.

---

Definitions:

Spot Rate

The price at which a financial instrument or commodity can be bought or sold for immediate delivery, emphasizing current market value.

Fair Value Hedge

A hedge that protects against changes in the fair value of assets, liabilities, or unrecognized firm commitments.

Fair Value Hedge

A hedge that is used to mitigate the risk of changes in the fair value of an asset or liability or an unrecognized firm commitment.

Cash Flow Hedge

A financial strategy used to manage the risk of fluctuations in cash flow due to changes in exchange rates, interest rates, or commodity prices.