If a Firm Is the Sole Supplier of a Good

question 148

Multiple Choice

If a firm is the sole supplier of a good for which there are no close substitutes,and barriers to entry into the industry exist,it must be that

• A) profit will be earned.
• B) losses will never occur.
• C) any price can be charged.
• D) price and marginal revenue are the same.
• E) a deadweight loss to society will occur.

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Definitions:

Park Construction

The process of designing, planning, and building an area of land with recreational facilities, natural elements, and landscaping intended for public use.

Necessary Increase

An essential rise in quantity or capacity required to meet a specific need or to maintain equilibrium.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the potential benefits missed out on.

Personal Income Tax

Tax levied on individuals or households based on their income level.