Which of the Following Best Describes a Firm That Is

question 64

Multiple Choice

Which of the following best describes a firm that is a monopolist?

• A) The firm will definitely make an economic profit in the short run.
• B) The firm will produce a smaller quantity of output than what would be best from the viewpoint of ideal economic efficiency.
• C) The firm can charge whatever it wants for its product, since consumers have no alternatives.
• D) The additional revenue that can be generated from an increase in output will exceed the firm's price.

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Definitions:

Specific Behaviors

Observable actions or responses of an individual in particular situations, which can be critical in evaluating or developing personal or professional competencies.

Qualifying Health Care Insurance

A health insurance policy that meets specified criteria set by government agencies to qualify for tax benefits or compliance with health care mandates.

Permitted Exemption

A deduction allowed under tax law that decreases the amount of income that is subject to taxation, based on specific criteria or eligibility.

Household Income

The combined gross income of all members of a household, used for various financial assessments.