Firm X Is a Single Seller of Good X

question 25

Multiple Choice

Firm X is a single seller of good X. There are, however, two substitutes for good X. Given this,

• A)firm X cannot be a monopolist because the theory of monopoly assumes there are no substitutes for the good the single seller sells.
• B)firm X may be a monopolist because the two substitutes may be close substitutes.
• C)firm X cannot be a monopolist because if substitutes exist for the good it produces, its demand curve is horizontal but monopolists face downward-sloping demand curves.
• D)none of the above

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Definitions:

Ethics Codes

A set of guidelines designed to help professionals conduct business honestly and with integrity.

Employee Misconduct

Any action taken by an employee that is deemed inappropriate or unethical according to company policies or societal norms.

Social Programs

Public or private initiatives designed to improve communities' welfare by addressing social issues such as healthcare, education, and income support.

Bottom Line

Refers to the net income of a company, indicating its profitability, or alternatively, the most important or fundamental aspect of a situation.