Which of the Following Statements Is False

question 106

Multiple Choice

Which of the following statements is false?

• A)Congress has granted the U.S.Postal Service the exclusive franchise to deliver first-class mail.
• B)A natural monopoly exists where economies of scale are so pronounced in an industry that only one firm can survive.
• C)In the United States patents are granted for a period of 10 years.
• D)A public franchise is a right granted to a firm by government that permits the firm to provide a particular good or service and excludes all others from doing the same.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicative of the return on investment for shareholders.

Capital Gains Yield

The capital gain on a stock divided by the price at which it was purchased.

Future Earnings

Expected future profits of a company, often used to assess its valuation or the potential return on investment.

Market Value

The current quoted price at which an asset or service can be bought or sold in a public marketplace.