Figure 11-1 -Is the Monopolist Supply Decision More Complicated Than That of Than

question 100

Multiple Choice

Figure 11-1
-Is the monopolist supply decision more complicated than that of competitive supply?

• A)Yes, because the monopolist can choose its price, and the perfect competitor cannot.
• B)No, because they are both price takers.
• C)No, because the market determines the quantity for the monopolist.
• D)No, because the market determines the price for both firms.

---

Definitions:

Cost of Goods Available

Cost of Goods Available represents the total cost of merchandise available for sale during a certain period, including the beginning inventory plus net purchases.

Operating Expense

Costs associated with the normal day-to-day operations of a business, such as rent, utilities, and salaries, but excluding costs related to production.

Merchandising Company

A business entity that purchases finished goods and sells them at a profit, without altering their form.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by calculating the percentage of revenue that exceeds the cost of goods sold.