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:

Textbook Selection

The process of choosing textbooks for academic courses, often involving evaluation of content relevance, level of difficulty, and alignment with curriculum goals.

Paradox of Voting

This refers to the situation where the costs of voting (time, effort, etc.) outweigh the seemingly negligible impact one vote has on the outcome of an election, creating a paradox as to why rational individuals would vote at all.

Majority Voting

A voting system in which decisions are made based on the preference of more than half of the participants.

Community's Preference

A concept in economics and social sciences that refers to the collective decision-making or tastes of a community as a whole.