Which of the Following Statements Is True

question 35

Multiple Choice

Which of the following statements is true?

• A)One reason a monopoly can earn economic profits is because it can raise price and restrict output.
• B)A perfectly competitive firm can earn economic profits because it can raise price and restrict output.
• C)Income is transferred from producers to consumers in a monopoly compared to perfect competition.
• D)Monopolists who price-discriminate rarely earn positive economic profits in the long run.
• E)A monopolist misallocates resources because P = MC.

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Definitions:

American Children

Refers to children residing in the United States, encompassing a diverse range of backgrounds, cultures, and experiences.

Antipoverty Programs

Initiatives designed to reduce or eliminate poverty by providing financial assistance and support services to those in need.

Federal Government

The national government of a federal state, which shares sovereignty with its subdivisions and has powers distinct from them.

Poverty Rate

The percentage of the population living below the national poverty line, which measures the minimum level of income considered necessary to achieve an adequate standard of living.