Using a Broad Definition, a Firm Would Have a Monopoly

question 168

Multiple Choice

Using a broad definition, a firm would have a monopoly if

• A)it produced a product that has no close substitutes.
• B)it does not have to collude with any other producer to earn an economic profit.
• C)there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
• D)it can make decisions regarding price and output without violating antitrust laws.

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Definitions:

Negative Correlation Coefficient

A statistical measure indicating that as one variable increases, the other variable tends to decrease.

Linear Relationship

A type of connection between two variables where the change in one is directly proportional to the change in the other.

Positively Skewed Distribution

A type of distribution where the tail on the right side of the distribution's peak is longer or fatter than the left side, indicating that the bulk of the values lie to the left of the mean.

Distribution

The manner in which a statistical data or a population is spread out or arranged over a range of values.