Which of the Following Is Not Generally True About a Profit-Maximizing

question 66

Multiple Choice

Which of the following is not generally true about a profit-maximizing monopolist?

• A) The monopolist faces a perfectly elastic demand curve.
• B) The monopolist can potentially continue to earn economic profits in the long run.
• C) The monopolist charges a price that exceeds marginal cost.
• D) The monopolist chooses output where marginal revenue equals marginal cost.

---

Definitions:

Periodic Inventory System

A system where inventory levels and the cost of goods sold are determined at the end of the accounting period through physical inventory counts.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous transactions.

Freight Charges

Fees associated with the transport of goods from one place to another, paid by the sender or receiver.

Recent Goods

Recent goods refer to merchandise or products that have been newly received or produced, often highlighted for their novelty or relevance to current trends.