Which of the Following Statements Is NOT Correct About Monopoly

question 75

Multiple Choice

Which of the following statements is NOT correct about monopoly?

• A) A monopolist generally faces a downward-sloping demand curve.
• B) Monopolists always make positive profits in the long run.
• C) A monopoly may make negative profits in the short run.
• D) There is no close substitute for a monopoly's product.

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Definitions:

Long-term Contracts

Agreements between parties that extend over a lengthy period, typically involving a commitment to buy or sell goods or services for the duration of the contract.

Reciprocal Arrangements

Agreements between two parties where each offers concessions or benefits to the other to maintain a cooperative relationship.

Organizational Buying Criteria

The specific attributes or factors that a business considers when making a purchasing decision, such as price, quality, service, and supplier reputation.

Supplier's Products

The goods or services provided by a supplier to retailers or distributors for the purpose of resale or incorporation into another product.