Which of the Following Statements Is Correct

question 316

Multiple Choice

Which of the following statements is correct?

• A) Monopolies are guaranteed to earn an economic profit.
• B) The market demand and the firm's demand are the same for a monopoly.
• C) Monopolies have perfectly inelastic demand for the product sold.
• D) Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve.
• E) Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.

---

Definitions:

Aggregate Demand

The aggregate need for all products and services across an economy at different pricing points, during a defined timeframe.

Nominal Variables

Economic variables measured in monetary terms without adjustment for inflation, reflecting their value in current prices.

Real Variables

Variables measured in physical units.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic performance over time.