Which of the Following Results Will Not Occur in a Monopolistic

question 144

Multiple Choice

Which of the following results will not occur in a monopolistic market?

• A)The monopolist will maximize profits by setting a price that's higher than marginal cost.
• B)The price will be higher than what would prevail in a competitive market.
• C)In monopoly pricing, income is, in effect, transferred from consumers to the monopolist.
• D)The output level will be higher than in a competitive market.

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Definitions:

Lost Profits

Income that a business does not receive due to disruptions, such as breaches of contracts or other damages, which could have been earned if the disruption had not occurred.

Property Insurance

A type of insurance policy that provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft.

Actual Value

The true or fair market value of an asset or property.

High Premium

An insurance policy or financial product cost that is significantly above average, often reflecting higher risk or greater coverage.