Which of the Following Statements with Respect to the Monopolist

question 54

Multiple Choice

Which of the following statements with respect to the monopolist is FALSE?

• A) A monopolist can make higher profits if it can price discriminate.
• B) A monopoly tends to result in a lower quantity being sold than perfect competition does.
• C) Monopoly is a situation in which a single firm dominates.
• D) A monopoly arises in a situation with few barriers to entry into the marketplace.

---

Definitions:

FTC Action

Measures taken by the Federal Trade Commission, an independent agency of the United States government, to enforce antitrust laws and protect consumers from deceptive business practices.

Cooling-Off Rule

A regulation that allows consumers a set period to cancel agreements or contracts without penalties.

Salesperson

An individual who sells goods or services to customers for a living.

Open-End Credit Line

A flexible loan facility that allows borrowers to draw down, repay, and redraw loans up to a specified credit limit.