Most Markets Are Not Monopolies in the Real World Because

question 556

Multiple Choice

Most markets are not monopolies in the real world because

• A)firms usually face downward-sloping demand curves.
• B)supply curves slope upward.
• C)firms usually equate price with marginal cost.
• D)there are reasonable substitutes for most goods.

---

Definitions:

PE Ratio

The Price to Earnings Ratio, a metric used to evaluate the valuation of a stock by dividing its current share price by its earnings per share.

EPS

Earnings Per Share, a company's profit divided by its number of outstanding shares of stock, indicating the company's profitability.

Stock Price

This is the current price at which a share of a company is bought or sold in the market.

Insolvent Firm

A business that cannot meet its financial obligations as they come due because its liabilities exceed its assets.