Which of the Following Is True for the Monopolist

question 8

Multiple Choice

Which of the following is true for the monopolist?

• A) Marginal revenue is less than the price charged.
• B) Economic profit is possible in the long-run.
• C) Profit maximizing or loss minimizing occurs when marginal revenue equals marginal cost.
• D) All of the above.
• E) None of the above.

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Definitions:

Profit Margin

A financial ratio that measures the percentage of profit a company makes for each dollar of sales.

Return on Investment

A measure evaluating the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Residual Income

The income that remains after all required costs of capital and operating expenses have been paid.

Missing Items

Refers to items that are unaccounted for due to error, theft, or misplacement, impacting inventory counts and financial statements.