For a fiRm to Be Considered a Monopoly, It Must

question 30

Multiple Choice

For a firm to be considered a monopoly, it must _____.

• A) take as given the price of the product that is established in the market
• B) be the only buyer of a factor of production
• C) be the only producer of a good for which there are no close substitutes
• D) face only a few competitors that produce similar, but not identical, products

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods or services.

Least-Cost Combination

An economic principle where firms aim to achieve the lowest possible cost of production by efficiently combining resources.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.

Total Dollars

The aggregate or total amount of money without adjusting for factors such as inflation or purchasing power.