A Monopoly Occurs When

question 134

Multiple Choice

A monopoly occurs when

• A)There is only one producer of a good or service.
• B)There is only one buyer of a good or service.
• C)Owners take on additional risk and earn huge profits.
• D)Companies become greedy and raise the price of a good or service.

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Definitions:

Disposable Income

Income left for households to direct into savings and spending after deductions of income taxes.

APC

APC, or Average Propensity to Consume, is the ratio of total consumption to total disposable income, indicating how much income is spent.

Induced Consumption

The portion of consumer spending that changes in response to changes in disposable income.

Disposable Income

The sum of funds that individuals or families can allocate towards savings or expenditure once they've deducted income taxes.