Which Statement Is True

question 17

Multiple Choice

Which statement is true?

• A)If the Metropolitan Opera had every opera star in the world under contract,it would be considered a monopoly because it had control over an essential resource in its business.
• B)There is no way to distinguish between the long run and the short-run if a monopoly is making a profit.
• C)Until the early 1960s,the National Football League had control of an essential resource,star football players,and was therefore able to maintain its monopoly status until the American Football League started drafting college stars in the early 1960s.
• D)All of the statements are true.

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Definitions:

Designated Securities

These are specific securities that have been selected for a special purpose, such as being eligible collateral for a loan or part of a regulated market segment.

Moral Hazard

The situation where one party to an agreement can take risks because they know that another party bears the consequences of those risks, often seen in insurance and finance.

Unfavorable Information

Data or news that negatively impacts the valuation or perception of a company or investment.

Auditors

Professionals who examine and verify a company’s financial records and practices to ensure accuracy and compliance with accounting standards and regulations.