Which of the Following Can Eliminate the Inefficiency Inherent in Monopoly

question 98

Multiple Choice

Which of the following can eliminate the inefficiency inherent in monopoly pricing?

• A)Arbitrage
• B)Cost-plus pricing
• C)Price discrimination
• D)Regulations that force monopolies to reduce their levels of output

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Definitions:

Return On Total Assets

A financial ratio that indicates how effectively a company is using its assets to generate profit, measured by dividing net income by total assets.

Earnings Per Share

This is a financial ratio that measures the amount of net income earned per share of stock owned.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets, calculated by dividing total revenue by average total assets.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in utilizing its assets to generate sales or income, calculated by dividing net sales by the average total assets.