The Monopolist Is Able to Enjoy Profits in the Long

question 109

Multiple Choice

The monopolist is able to enjoy profits in the long run because:

• A) the firm's price is set above its marginal costs.
• B) there is no threat of competition.
• C) the firm can charge a price higher than its average total costs in the long run.
• D) All of these statements are true.

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Definitions:

Reciprocity

A social norm of responding to a positive action with another positive action, rewarding kind actions as opposed to indifferent or hostile actions.

Basic Personality Measures

Assessments or tests designed to evaluate fundamental aspects of an individual’s character or disposition.

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Promoting acceptance and open-mindedness towards opinions, practices, or traits that are different from one's own.

Higher Levels of Empathy

Describes individuals who possess an above-average capacity to understand and share the feelings of others.