Because a Monopolist Is the Sole Producer in Its Market

question 625

Multiple Choice

Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good (i)
Without affecting the quantity sold.(ii)
Without affecting its average total cost.
(iii)
By adjusting the quantity it supplies to the market.

• A)(ii) only
• B)(iii) only
• C)(i) and (ii) only
• D)(ii) and (iii) only

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Definitions:

Authorized Shares

The upper limit of shares a corporation can legally distribute, as outlined in its articles of incorporation.

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company or corporation.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.