Which of the Following Is Not True for a Profit

question 25

Multiple Choice

Which of the following is not true for a profit maximizing single-price monopolist in the long run?

• A)It will make profit or break even.
• B)Price is greater than marginal revenue.
• C)Marginal revenue equals marginal cost.
• D)Demand is inelastic.

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Definitions:

Accounts Payable Period

The average number of days it takes a company to pay off its suppliers and creditors.

Operating Cycle

The time period between the acquisition of inventory by a company and the receipt of cash from the sale of that inventory.

Payables Turnover

A financial efficiency ratio that measures how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.