Which of the Following Statements Is(are) True of Monopolies

question 138

Multiple Choice

Which of the following statements is(are) true of monopolies?
(i) they cannot make unlimited profits
(ii) they have the ability to set prices at whatever level they desire
(iii) they do not have to worry about their revenue falling if they increase the prices

• A)(i) and (ii)
• B)(ii) only
• C)(ii) and (iii)
• D)(i), (ii) and (iii)

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Definitions:

Operating Cash Flow

A metric reflecting the cash flow from a company's core operations.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been subtracted from revenues, representing the profit during a specific period.

Depreciation

Allocation of the cost of an asset over its useful life, recognizing the reduction in value due to wear and use.

Bid Price

The price at which a buyer is willing to purchase a security, currency, or commodity.