Which of the Following Statements About Monopoly Is False

question 18

Multiple Choice

Which of the following statements about monopoly is false?

• A)A single firm serves the market.
• B)There are no close substitutes for the monopolist's output.
• C)There are usually significant barriers to entry.
• D)Because there is a single firm serving the entire market, the monopolist can charge whatever price it wants to for its output.

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Definitions:

Premium Price

Pricing goods or services higher than the market average to reflect their perceived extra value or quality.

Revenue Driver

Key factors or activities that significantly influence or contribute to the generation of income for a business.

Presales Costs

Expenses incurred during the preliminary phase of a sales process, such as market research, product development, and pitch preparation, before actual sales begin.

Cost Of Goods Sold

The immediate expenses linked to the creation of products sold by a business, such as materials and labor.