Which of the Following Is True Regarding Monopoly

question 59

Multiple Choice

Which of the following is true regarding monopoly?

• A) Monopolies produce too much and charge too much from the standpoint of efficiency.
• B) Monopolies usually are economically efficient because they have economic profits with which to work.
• C) Monopolies produce too little and charge too much from the standpoint of efficiency.
• D) Monopolies create an efficiency problem but are not associated with an equity problem.

---

Definitions:

Uninsured Risk

Risk that has not been covered by an insurance policy, leaving the individual or business exposed to potential financial loss.

Indebtedness Guarantees

Commitments made by one party to assume responsibility for the debt obligation of another party if that party fails to make payment.

Noncollectibility Receivables

Accounts receivable that are considered unlikely to be collected by a business.

Gain Contingencies

Possible gains or income that a business might receive, contingent upon future events that can't be predicted with certainty.