A Monopolist Will Shut Down in the Short Run If

question 29

Multiple Choice

A monopolist will shut down in the short run if:

• A)marginal revenue is less than price.
• B)price is less than marginal revenue.
• C)total revenue is less than total fixed cost.
• D)total revenue is less than total variable cost.
• E)marginal revenue is less than marginal cost.

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Definitions:

Equilibrium

A condition or state where supply equals demand, resulting in a stable market environment.

Currency Selection Return

The return attributed to the choice of currency in which investments are denominated.

EAFE

An abbreviation for Europe, Australasia, and Far East, representing a stock market index that gauges the equity market performance of developed markets outside of the U.S. and Canada.

Benchmark

A standard or reference by which others can be measured or judged, often used in finance to compare the performance of investments.