A Monopoly

question 145

Multiple Choice

A monopoly

• A) faces a perfectly elastic demand curve.
• B) does not need to take account of demand because it's the only seller.
• C) is able to raise the price it can charge for its product by increasing the quantity sold.
• D) is able to raise the price it can charge for its product by decreasing the quantity sold.

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Definitions:

Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual, where there is no legal separation between the owner and the business entity.

Limited Partnership

A form of partnership consisting of one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only up to the amount they invest.

Limited Liability Partnership

is a partnership in which some or all partners have limited liabilities, protecting each partner's personal assets from debts and liabilities of the partnership.

Professional Partnership

A business organization formed by two or more professionals, such as lawyers or doctors, to provide services within their expertise.