Which of the Following Is Not True of a Pure

question 194

Multiple Choice

Which of the following is not true of a pure monopoly?

• A)Demand is negatively sloped
• B)Marginal revenue is less than price therefore the firm should consider raising its price until marginal revenue equals demand
• C)Marginal revenue is less than average revenue therefore the firm should consider adjusting its quantity until marginal revenue equals average revenue
• D)It is a price taker
• E)Its position is protected by significant barriers to entry

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.

Statement Of Cash Flows

A financial document summarizing total cash inflows from operational activities and external investments alongside outflows for business operations and investment expenditures over a specific timeframe.

Investing Activities

Finance-related activities in a company that involve acquiring or disposing of long-term assets.

Net Cash

The total amount of cash and cash equivalents a company possesses after deducting all liabilities.