Monopolies May Not Be Interested in Exploiting Economies of Scale

question 66

Multiple Choice

Monopolies may not be interested in exploiting economies of scale because:

• A) they have to sell goods at the market price.
• B) they cannot control supply in the market
• C) they do not have any competitors.
• D) they earn normal economic profits in the short run.

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Definitions:

Total Stockholders' Equity

The total amount of funds contributed by shareholders and retained earnings within a company.

Total Liabilities

The total of all financial obligations owed by a business to creditors, including loans, accounts payable, and other debts.

Retained Earnings

The portion of a company's profits that are not distributed as dividends to shareholders but are kept by the company for reinvestment.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.