Which of the Following Best Describes a Monopolist in the Short

question 65

Multiple Choice

Which of the following best describes a monopolist in the short run?

• A) It always suffers an economic loss.
• B) It always earns an economic profit.
• C) It always earns a normal rate of return.
• D) It may make an economic loss, an economic profit, or zero economic profits.

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Definitions:

Reciprocating Compressor

A type of compressor that uses pistons driven by a crankshaft to deliver gases at high pressure.

Geographic Pricing

A pricing strategy where the price of a product or service varies according to the geographic location of the buyer.

Single-Zone Pricing

A pricing strategy where a company charges the same price for its product or service, regardless of the geographical location of the customer.

Multiple-Zone Pricing

A pricing strategy where a company sets different prices for its products or services in different geographical areas based on local market conditions.