A Monopoly's Short-Run Marginal Cost Is Constant at $10

question 231

True/False

A monopoly's short-run marginal cost is constant at $10.This implies that its average variable cost is also constant and equal to $10.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to any change.

Shut Down

In economics, a short-run decision not to produce anything during a specific period because of current market conditions.

Short Run

A period in which at least one factor of production is fixed, and firms can adjust only to a limited set of variables.

TR < TVC

This expression denotes a situation where Total Revenue (TR) is less than Total Variable Costs (TVC), indicating a loss-making scenario for the business.