Which of the Following Is NOT True About a Monopoly

question 148

Multiple Choice

Which of the following is NOT true about a monopoly?

• A)The demand curve for a monopoly's product is perfectly elastic
• B)For any given quantity the price of the monopoly's product will exceed the marginal revenue from that amount.
• C)If the monopoly maximizes profit it will charge a price that exceeds marginal cost.
• D)It must adjust output until marginal revenue equals marginal cost to maximize profit.

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Definitions:

Corporation

A business firm that is a legal person. Its chief advantage is that each owner’s liability is limited to the amount of money he or she invested in the company.

Stockholders

Individuals or entities that own shares in a corporation, possessing ownership interests and rights to dividends.

Owned

The state of having legal rights to possess, use, and control a property or asset.

Reserve Army

Reserve army typically refers to a body of trained citizens held in readiness as a military force to be called upon in specific circumstances, but in Marxist theory, it also denotes the surplus labor available for capital exploitation.