Which of the Following Is TRUE of a Monopoly

question 432

Multiple Choice

Which of the following is TRUE of a monopoly?

• A) It can always increase its revenue by increasing the price to its customers.
• B) It will always operate somewhere along the inelastic portion of the demand curve.
• C) Its marginal cost curve is always downward sloping.
• D) None of the above is correct.

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Definitions:

Noncash Assets

Assets that cannot be easily converted into cash, including property, plant, equipment, patents, and trademarks.

Gain or Loss

The financial result of transactions that leads to an increase (gain) or decrease (loss) in the capital of an entity, not related to its primary operations.

Capital Balances

The amount of funds that each partner or shareholder has contributed to a company, not including any profits or losses retained in the company.

Partnership Liabilities

Obligations and debts that are shared by partners in a partnership arrangement.