In 1999,a Judge Declared That Microsoft Was a Monopolist

question 309

Multiple Choice

In 1999,a judge declared that Microsoft was a monopolist.Assuming that Microsoft has a linear demand curve and that it is maximizing its profits at its current level of output,we may conclude that,if Microsoft were to increase its price,its total revenue would:

• A)rise.
• B)fall.
• C)remain unchanged.
• D)There is insufficient information to make a determination.

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Definitions:

Cash Flow Hedge

A type of hedge that protects against the variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction.

Fair Value Hedge

A type of hedge that is used to mitigate the risk of changes in the fair value of an asset or liability.

Net Investment

The purchase of capital assets minus depreciation, representing the total amount invested in assets for generating income.

Recognised Asset

An item of economic value that is accounted for and reported on a company's financial statements, meeting specific recognition criteria.