Which of the Following Is Characteristic of the Monopoly Firm

question 98

Multiple Choice

Which of the following is characteristic of the monopoly firm?

• A)It produces the quantity of output at which marginal revenue equals marginal cost, MR = MC.
• B)It charges a price per unit for its product that is equal to marginal cost.
• C)It always earns a profit, because it is a single seller of a product.
• D)It charges a price per unit for its product that is less that its marginal cost.

---

Definitions:

Federal Spending

The total amount of money spent by the federal government of a country on various national programs, services, and obligations.

Health Care

The maintenance and improvement of physical and mental health through medical services.

Income Security

Financial protection against uncertainties causing loss of income, including programs like pensions, unemployment insurance, and social security.

National Defense

Government or collective actions and strategies intended to protect a country and its citizens from external threats and maintain territorial integrity and sovereignty.