Which of the Following Statements Is Not Correct

question 3

Multiple Choice

Which of the following statements is not correct?

• A)Consumers will likely benefit in the form of lower prices from buying a product made by a natural monopoly than if the market were served by several firms.
• B)Monopolists typically charge higher prices than competitive firms.
• C)Monopolists typically produce larger quantities of output than competitive firms.
• D)Consumers may benefit from monopolies if the firms invest their higher profits into something that benefits society such as medical research.

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Definitions:

Total Assets

The sum of all current and non-current assets that a company owns, as reflected in its balance sheet.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or shares of stock.