Which of the Following Statements Is Correct

question 149

Multiple Choice

Which of the following statements is correct?

• A)The benefits that accrue to a monopoly's owners are equal to the costs that are incurred by consumers of that firm's product.
• B)The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity.
• C)The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product.
• D)The primary social problem caused by monopoly is monopoly profit.

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Definitions:

TRIN Statistic

A technical analysis indicator known as the TRading INdex (TRIN), which compares the number of advancing and declining stocks to their respective volume, aiming to gauge overall market sentiment.

Bearish Signal

An indication in technical analysis or market behavior suggesting that the price of an asset is likely to decline.

Bullish Signal

An indicator suggesting that the price of an asset is likely to increase, often leading investors to buy or hold positions.

Relative Strength

A momentum investing technique comparing the performance of a stock or asset to that of a broader market index to gauge its strength.