Which of the following is true for a monopoly?
A. A price ceiling on a monopoly is always desirable and price does not equal marginal cost.
B. A price ceiling on a monopoly is always desirable.
C. Price does not equal marginal cost.
D. A monopoly always makes a positive profit.
Answer: C
You might also like to view...
Ron regularly deposits $200 each week into a savings account, which earns 3% interest per year. This month he decides instead to invest $200 into the stock market. What is the opportunity cost of Ron's decision to invest rather than save?
A) $200 B) The 3% interest he could have earned by depositing another $200 into his savings account C) The difference between the rate of return he enjoys in the stock market and the 3% interest return he could have earned by depositing that $200 into his savings account D) Zero, because Ron already had the $200
The slope of a horizontal line is always equal to zero
Indicate whether the statement is true or false