Which of the Following Statements Is True About the Price

question 109

Multiple Choice

Which of the following statements is true about the price that a monopolist charges?

• A) The price is the same as the price that would be charged if there was perfect competition.
• B) The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs.
• C) The value that society places on the last unit produced in a monopoly is greater than its cost.
• D) Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set.

---

Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company.

Inventory Account

An account on the balance sheet that reports the value of a company's goods that are unsold at the end of the accounting period.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Cash Dividends

Profits paid out to shareholders by a corporation from its earnings in the form of cash.