Which of the Following Statements Is Correct

question 316

Multiple Choice

Which of the following statements is correct?

• A) Monopolies are guaranteed to earn an economic profit.
• B) The market demand and the firm's demand are the same for a monopoly.
• C) Monopolies have perfectly inelastic demand for the product sold.
• D) Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve.
• E) Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.

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Definitions:

Cash Payments

Transactions in which money is paid out or disbursed by a business, typically related to operational expenses, purchases, or other financial obligations.

Raw Materials Inventory

The total cost of all components and materials a company holds that are yet to be used in the manufacturing process.

Direct Material

Direct Material refers to the raw materials that can be directly attributed to the production of goods, clearly identifiable and quantifiable.

Production Needs

Refers to the resources and requirements necessary to manufacture goods or provide services, including materials, labor, and machinery.