Which of the Following Is Not True for a Monopoly

question 3

Multiple Choice

Which of the following is not true for a monopoly?

• A) The demand curve for the monopoly and the market are the same.
• B) It has no direct competitors.
• C) It can use its market power to charge higher prices than a competitive firm.
• D) It is a price taker.

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Definitions:

Positive Incomes

Situations or instances where individuals or entities receive or earn money, representing an increase in financial resources.

Real Rate

The interest rate adjusted for inflation, more accurately reflecting the true cost of borrowing or the real yield on an investment.

Prices Fall

A situation where the monetary value or cost of goods and services decreases over a period of time, often leading to increased consumer demand.

Perfect Substitutes

Goods that can be used in place of each other with no loss of utility to the consumer, often seen as identical in consumption.