Which of the Following Need Not Be True of a Monopoly

question 19

Multiple Choice

Which of the following need not be true of a monopoly?

• A) The firm must be the only producer of the product.
• B) The product must have no close substitutes.
• C) There must be high barriers to entry.
• D) The firm must earn an economic profit in the short run..

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Definitions:

Factor Of Production

Essential resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Supply Curve

The Supply Curve is a graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell at each price level.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Marginal Product

The additional output that is produced by employing one more unit of a specific input, holding other inputs constant.