A Monopolist

question 133

Multiple Choice

A monopolist:

• A) Maximizes profit at the output where price equals marginal cost.
• B) Charges a higher price than a competitive firm,ceteris paribus.
• C) Is a price taker since it has market power.
• D) Cannot earn an economic profit in the long run.

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Definitions:

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in the quantity of output produced.

Barriers to Market Entry

Obstacles that make it difficult for a new firm to enter an industry, which might include high start-up costs, strict regulations, or established brand loyalty.

Public Utilities

Companies that provide essential services like water, electricity, natural gas, and telecommunications to the public, often under government regulation.

Political Power

The ability to influence or outright control the behavior of people and institutions, often within a governmental context.