If the average total cost curve is always above the demand curve of a monopolist:
a. that monopolist will suffer economic losses
b. entry will occur, forcing the monopolist to reduce price and expand output.
c. the monopolist will earn an economic profit.
d. the monopolist must be producing inefficiently.
a
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The accepted philosophy on U.S. federal deficits prior to the Great Depression was that: a. the budget should be balanced cyclically
b. a budget deficit does not matter as long as the economy is at full employment. c. the budget should be annually balanced. d. deficits dampen aggregate demand in the short run and reduce the federal debt. e. spending decreases during expansions and increases during recessions.
In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:
A. nominal income declined by more than personal income. B. the price level rose by more than nominal GDP. C. real wages declined by more than real GDP. D. the price level fell by more than real GDP.