A Benefit of a Monopoly Is

question 206

Multiple Choice

A benefit of a monopoly is

• A)lower prices.
• B)a wide variety of similar products.
• C)decreasing long-run average total costs.
• D)greater creativity by authors who can copyright their novels.

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Definitions:

Opportunity Costs

The expense incurred by not choosing the second-best option available during decision-making.

Initial Cash Flow

The first influx or outflow of cash associated with an investment or project, marking the beginning of its cash flow timeline.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Replacement Projects

Investments made to replace worn-out or obsolete assets with new assets.