The Median Voter Theorem States That the Outcome of a Majority

question 186

Multiple Choice

The median voter theorem states that the outcome of a majority vote

• A)tends to favor the preferences of high-income individuals and ignore the median voter.
• B)is likely to represent the preferences of society's middle-income voter.
• C)is likely to represent the preferences of the voter who is in the political middle.
• D)is determined by the average consumer and producer in an economy.

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Definitions:

Natural Monopoly

A market structure where a single firm can provide a product or service at a lower cost than any potential competitor, often due to economies of scale.

Average Total Cost

The total cost of production divided by the total output, or the cost per unit of output on average.

Pharmaceutical Company

A commercial business that researches, develops, makes, and sells pharmaceutical drugs and treatments.

Average Revenue

The total revenue divided by the quantity sold, representing the amount of revenue generated per unit of output sold.