A Monopoly Can Arise When

question 47

Multiple Choice

A monopoly can arise when

• A) there are diseconomies of scale.
• B) there are barriers to entry and no close substitutes for the good being produced.
• C) a firm cannot price discriminate.
• D) firms engage in rent seeking.
• E) a firm must set MR equal to MC in order to maximize its profit.

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Definitions:

Cash Receipts

The collection of money (currency, checks, or electronic transfers) received by a business from its various sources.

Cash Payments

Transactions involving the transfer of cash from one entity to another, typically in exchange for goods or services.

Debit Balance

The amount that remains in a specific account after accounting for debits and credits, indicating the total debits exceed the total credits.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior, or for a chain of reasoning.