Which of the following statements is TRUE? O A. Consumer surplus is higher under a single-price monopoly than it is under a perfectly price-discriminating monopoly. O B. Joan adds one more employee to her construction company. The additional output produced by this employee represents the average product of this employee. O C. Lawn mowing is a perfectly competitive industry. Alex's Lawn-Mowing Service should shut down in the short run whenever his profits are negative. D. Lawn mowing is a perfectly competitive industry. Alex's Lawn-Mowing Service should close if Alex expects his long-run economic profits to equal zero.

Which of the following statements is TRUE? O A. Consumer surplus is higher under a single-price monopoly than it is under a perfectly price-discriminating monopoly. O B. Joan adds one more employee to her construction company. The additional output produced by this employee represents the average product of this employee. O C. Lawn mowing is a perfectly competitive industry. Alex's Lawn-Mowing Service should shut down in the short run whenever his profits are negative. D. Lawn mowing is a perfectly competitive industry. Alex's Lawn-Mowing Service should close if Alex expects his long-run economic profits to equal zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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