Which Statement About Monopolies Is NOT Correct

question 248

Multiple Choice

Which statement about monopolies is NOT correct?

• A) In the short run, monopolies can suffer losses.
• B) In the short run, monopolies never shut down.
• C) In the long run, monopolies must at least earn normal profit.
• D) In the long run, if losses persist, monopolies will exit the industry.

---

Definitions:

Cost of Conformance

The costs incurred to ensure that a product or service meets the quality standards and requirements, including prevention and testing costs.

Cost of Appraisal

The expenses associated with the activities to measure, evaluate, or audit products or services to ensure conformance with quality standards.

Group Involvement

The participation and collaboration of multiple individuals or teams in the pursuit of a common goal or project.

68-95-99.7 Rule

A statistical rule stating that in a normal distribution, about 68% of observed values fall within one standard deviation, 95% within two, and 99.7% within three standard deviations of the mean.