In the Absence of Government Regulation

question 61

Multiple Choice

In the absence of government regulation:

• A) a monopoly firm can indefinitely sustain greater than normal profits.
• B) a monopoly firm can sustain only normal profits.
• C) a monopoly firm will not, even in the short run, sustain a loss.
• D) a monopoly firm will not, even in the short run, be forced into a temporary shut down situation.
• E) if a monopoly firm remains in business over the long run, it can not be expected to have at least normal profits.

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Definitions:

Tax Purposes

This encompasses reasons or considerations related to the assessment, computation, and payment of taxes.

Employer-Paid Premiums

Premiums paid by employers for employee benefits like health insurance, usually not taxable income for the employee.

Life Insurance

Life Insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Taxable

Referring to income or transactions that are subject to taxation by government authorities.