Which of the Following Statements About Monopoly Is Most Accurate

question 189

Multiple Choice

Which of the following statements about monopoly is most accurate?

• A) The monopolist has no incentive to produce efficiently.
• B) Regardless of what is produced, the monopolist will use too many resources.
• C) A monopolist has no incentive to keep costs down.
• D) The monopolist "understocks" the market and charges too high a price.

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Definitions:

Markdown

A reduction from the original or previous retail price of a product.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Marked Up

Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.

Marked Down

Refers to a reduction in the selling price of goods or services, typically to clear inventory or to boost sales.