Which of the Following Is a Necessary Characteristic of a Monopoly

question 205

Multiple Choice

Which of the following is a necessary characteristic of a monopoly?

• A)The firm is the sole seller of its product.
• B)The firm's product has many close substitutes.
• C)The firm generates a large economic profit.
• D)The firm is located in a small geographic market.

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation, after all liabilities have been subtracted.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received, representing short-term liabilities.

Accounts Receivable

Funds that are due to a company from its clients for the delivery of goods and services which payment is pending.

Net Assets

The total assets of a company minus its total liabilities; a measure of its financial health and value.