When an Industry Becomes Monopolized

question 212

Multiple Choice

When an industry becomes monopolized:

• A) the gains to the monopolist are typically greater than the losses to consumers.
• B) the losses to consumers are typically greater than the gains to the monopolist.
• C) the gains to the monopolist are exactly the same amount as the losses to consumers.
• D) both the monopolist and consumers gain.

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Definitions:

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Payoff

The potential gain or loss that will result from a specific investment or decision.

Ounce

A unit of weight commonly used in the United States and the United Kingdom, equal to one-sixteenth of a pound or approximately 28.35 grams.

Futures Contract

A standardized legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.