A Monopolist Will Shut Down in the Short Run If

question 115

Multiple Choice

A monopolist will shut down in the short run if:

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

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Definitions:

Selective Exposure

The tendency of individuals to preferentially seek out and pay attention to information that conforms to their pre-existing beliefs and values, while avoiding contradicting information.

Federal Trade Commission

An independent agency of the United States government, established to promote consumer protection and eliminate and prevent anticompetitive business practices.

Selective Retention

The process by which individuals remember information that is consistent with their beliefs and attitudes, while forgetting or ignoring contradictory information.

Point-Of-Purchase Displays

In-store advertising or marketing materials positioned at retail checkout areas or other point-of-sale locations to encourage impulse purchases or inform customers about products.