Figure 11-5 -In Which of the Following Ways Is a Monopolist Different

question 98

Multiple Choice

Figure 11-5
-In which of the following ways is a monopolist different from a perfect competitor?

• A)Average cost will continually drop as output expands.
• B)Price is above marginal revenue.
• C)Average total cost equals average fixed costs plus average variable costs.
• D)The demand curve for the industry has a negative slope.

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Definitions:

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with current assets.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Accounts Receivable

Open accounts owed to the business by trade customers.

North American Industry Classification System

A standardized system used by Canada, Mexico, and the United States to classify businesses and industries for the purpose of collecting, analyzing, and publishing statistical data.