Which of the Following Statements About the Long-Run Equilibrium of a Monopoly

question 29

Multiple Choice

Which of the following statements about the long-run equilibrium of a monopoly firm is incorrect?

• A)A monopoly firm has no supply curve.
• B)A monopoly firm will never sell where the demand is elastic.
• C)A monopoly firm will not always make economic profits.
• D)A monopoly firm's demand curve coincides with its average revenue curve.

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Definitions:

Consumer Price Index

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Annual Rate

A way of expressing interest rates or growth rates on an annual basis, allowing for easier comparison across different time periods or financial products.

Inflation

The pace at which prices for general goods and services escalate, causing a decline in buying power.

GDP Price Index

A measure that tracks changes in prices of all goods and services produced within a country and is used to calculate real GDP.