Acquiring a Monopoly Supplier Has to Be More Cost-Effective Than

question 46

Multiple Choice

Acquiring a monopoly supplier has to be more cost-effective than buying the raw materials from the monopoly supplier. This is because:

• A) the internal price of the raw materials will be greater than the average cost.
• B) the internal price of the raw materials will be greater than the marginal cost.
• C) the monopoly price is always lower than the average cost.
• D) the monopoly price is always greater than the marginal cost.