Monopolies May Be Created When One Firm Owns an Input

question 68

Multiple Choice

Monopolies may be created when one firm owns an input that is difficult to duplicate and the:

• A) demand for the product is elastic.
• B) demand for the product is inelastic.
• C) supply of the product is elastic.
• D) supply of the product is inelastic.

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Definitions:

Accounting Sense

Pertains to the manner in which financial transactions are recorded and understood within the realm of accounting.

Financial Sense

Pertains to the practical and prudent management of money and financial resources to achieve set goals effectively.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investing activities.

Marginal Revenue

The additional revenue that a company generates by selling one more unit of a product.