Which of the Following Statements Is TRUE

question 350

Multiple Choice

Which of the following statements is TRUE?

• A) All monopolists are perfect price discriminators.
• B) All monopolists earn short-run economic profits.
• C) A monopolist will leave the market if it incurs an economic loss in the long run.
• D) A monopolist does not need barriers to entry to sustain a long-run economic profit.

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Definitions:

Real Terms

Refers to economic measures adjusted for inflation, enabling comparison of purchasing power across different times.

Population

The total number of people inhabiting a particular area, country, or region.

Net Exports

The net amount obtained when a nation's overall imports are subtracted from its overall exports.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to calculate real GDP.