A Single-Price Monopolist

question 475

Multiple Choice

A single-price monopolist

• A) sets its price where its demand is inelastic.
• B) can always increase its profits by increasing its price.
• C) has its marginal revenue less than its price.
• D) is guaranteed an economic profit.

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Definitions:

Gross Earnings

Gross earnings refer to the total income earned by an individual or company before any deductions such as taxes or other withholdings.

Taxes Applied

The implementation of tax rates to various forms of income, activities, or transactions.

FICA Taxes

Federal Insurance Contributions Act taxes, which fund Social Security and Medicare, required to be paid by both employees and employers.

Unemployment Tax Rates

Refers to the taxes that employers must pay to the government, usually at the state level, based on a percentage of the total payrolls of their employees to fund unemployment compensation programs.