CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

If a regulatory agency sets prices equal to a monopoly's long-run average cost (LRAC), the monopoly will most likely have economic profit that is ______.
A. positive
B. negative
C. zero
Explanation: If regulators set the price to equal long-run average cost, the monopolist will earn zero economic profits.

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