Which of the following statements best describe the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long-run.
b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
c. In the long-run, positive economic profit will be earned.
d. All of these are true.
c
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Which of the following is considered in the AS/AD model but was not considered in the short-run macro model?
a. The effect of price changes. b. The effect of interest rate changes. c. Increases in government spending. d. Monetary policy. e. Decreases in government spending.
Economists admire perfect competition for all of the following reasons except
a. market prices are at their lowest possible levels b. quantities are higher than with any other market condition c. consumers get the greatest variety of differentiated goods d. P = MC = ATC = MR e. goods are produced at minimum average total cost