Which of the Following Contributes to a Firm Maintaining a Monopoly

question 2

Multiple Choice

Which of the following contributes to a firm maintaining a monopoly?

• A)Exclusive franchises.
• B)The existence of substitute goods.
• C)A large number of firms in the industry.
• D)Homogeneous products in the market.

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Definitions:

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking risk, calculated as the excess return over the risk-free rate relative to the beta of the portfolio.

Beta

A means to evaluate the fluctuation, or inherent risk, of a security or portfolio against the aggregate market.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a benchmark for the overall market.