An Example of a Monopoly Would Be

question 189

Multiple Choice

An example of a monopoly would be

• A) one of many U.S. wheat farmers.
• B) one of the few U.S. auto makers.
• C) AT&T cell phone service.
• D) the local water company.
• E) Taco Bell

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Definitions:

MR

Stands for Marginal Revenue, which is the additional income earned from selling one more unit of a good or service.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit costs and opportunity costs.

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single seller can influence the market price.

Market Price

The present cost for purchasing or selling an asset or service within a specific market.