Which of the Following Is True

question 172

Multiple Choice

Which of the following is true?

• A) A monopolist is always guaranteed to earn positive economic profits regardless of their cost of production or the price they charge.
• B) A monopolist will charge the highest price possible for their product because no matter what price they charge, people will still have to buy it.
• C) A monopolist has no incentive to find more cost-efficient methods of production because they are protected from competition from other sellers.
• D) None of the above are correct.

---

Definitions:

Parent Company

A company that holds a controlling interest in one or more subsidiaries.

Financial Reporting Period

The time period covered by financial statements, typically a fiscal quarter or year.

Subsidiary

A company that is completely or partially owned and controlled by another company, known as the parent company.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.