If a Monopoly Is Subject to Average Cost Pricing, It

question 96

Multiple Choice

If a monopoly is subject to average cost pricing, it will:

• A)earn a normal rate of return.
• B)produce the socially efficient level of output.
• C)suffer economic losses without a subsidy.
• D)earn positive economic profits.
• E)produce more than the socially efficient level of output.

---

Definitions:

Rotavirus

A highly contagious virus that causes gastroenteritis, especially in infants and young children, characterized by diarrhea, vomiting, and fever.

Hand Hygiene

A practice of cleaning hands to remove dirt, germs, and bacteria to prevent spreading infections.

Disease Transmission

The process by which contagious illnesses are spread from one person to another, through direct or indirect means.

Latex Allergy

An allergic reaction to natural rubber latex, characterized by symptoms ranging from skin irritation to anaphylaxis.