A Monopoly Will Shut Down in the Short Run When

question 23

Multiple Choice

A monopoly will shut down in the short run when

• A)the average variable cost curve is above the demand curve.
• B)the marginal cost curve is above the demand curve.
• C)the average total cost curve is above the demand curve.
• D)the marginal revenue curve is horizontal.
• E)marginal cost is negative.

---

Definitions:

Equipment Utilization

A measure of how effectively a manufacturing or production facility's equipment is being used, often expressed as a percentage.

Postponement Strategy

A supply chain management tactic that delays the final production or distribution of a product until customer demand is known, to reduce inventory costs and increase customization.

Service Productivity

A measure of the efficiency and effectiveness of a service operation, often assessed by the output produced relative to the input used.

Hybrid Process

A production method that combines elements of both batch and continuous processing to improve efficiency and flexibility.