Which One of the Following Is the Best Description of a Monopolist

question 157

Multiple Choice

Which one of the following is the best description of a monopolist?

• A) a firm that produces a single product
• B) a firm that is the sole producer of a narrowly defined product class, such as yellow, grade-A butter produced in Jackson County, Wisconsin
• C) a firm that is the sole producer of a product for which there are no good substitutes in a market with high barriers to entry
• D) a firm that is large relative to its competitors

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Definitions:

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a specific period.

Required Return

The minimum expected return an investor demands for the level of risk taken on an investment.

Dividend

A part of a company's profits given out to its shareholders, often as cash or extra stock.

Growth Rate

A measure of the increase in size, number, value, or strength of something over a specific period of time.