Which of the Following Statements Is True for a Monopolist

question 177

Multiple Choice

Which of the following statements is true for a monopolist?

• A) a monopolist will charge the highest price for which he can sell units of his product.
• B) unregulated monopolists can gain by producing their chosen output at a low cost.
• C) if a firm has a monopoly, it will always be able to earn economic profit.
• D) none of the above statements are true.

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Definitions:

Causality

Causality is the relation between causes and effects, where one event (the cause) directly leads to another event (the effect).

Thrive

describes a state of flourishing or prospering, often characterized by success, development, or healthy growth in personal, professional, or biological contexts.

Profound Adversity

Severe and extreme difficulties or misfortunes, often leading to significant emotional, physical, or psychological stress.

Resilience

The capacity to recover quickly from difficulties; toughness or the ability to bounce back from life's challenges.