In the Short Run,if a Monopoly Is Forced to Charge

question 34

Multiple Choice

In the short run,if a monopoly is forced to charge a price equal to marginal cost:

• A)output will fall.
• B)the deadweight loss will decrease.
• C)consumer surplus will decrease.
• D)other firms will enter the industry.

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Definitions:

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and costs.

Truth in Savings Act

A federal law designed to promote fairness and transparency in the savings account practices of banks and other financial institutions.

Farmland

Agricultural land used primarily for the purpose of growing crops and, sometimes, raising livestock.