Because Monopoly Firms Are Price Setters

question 207

Multiple Choice

Because monopoly firms are price setters:

• A) they can only sell more by lower price.
• B) they charge all the market will bear.
• C) they sell more at higher prices than at lower prices.
• D) they take the market-determined price as given and sell all they can at that price.

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Profits

The financial gain obtained when revenues generated from business activities exceed the expenses, costs, and taxes associated with sustaining the business.

Dividends

Payments made by a corporation to its shareholders from its profits.

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