In the above figure, which of the following statements is FALSE if the firm is operating at output level Q2?
A. Average costs would be lowered by expanding output.
B. Economic profits are positive.
C. The price is lower than at an equivalent firm forced by regulators to charge ATC pricing.
D. The output is equivalent to an unregulated monopolist.
Answer: C
Economics
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As applied to voter behavior, the "rational ignorance" hypothesis claims
A) voters will have no incentive to be informed of political issues. B) voters will stop gathering information once the marginal costs exceed the marginal benefits. C) voters only vote on the basis of their instinctual or gut feelings. D) voters are selfish.
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What crucial role do financial intermediaries perform in an economy?
What will be an ideal response?
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