Which of the Following Statements Is True,assuming the Same Cost

question 62

Multiple Choice

Which of the following statements is true,assuming the same cost and demand conditions?

• A) A monopoly produces less output than a competitive firm.
• B) A monopoly cannot earn an economic profit in the long run.
• C) A monopoly charges a lower price than a competitive firm.
• D) A monopoly maximizes profit where price equals marginal cost.

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Definitions:

Competitive Advantage

Circumstances or factors that place an enterprise at a beneficial or higher standing against its competition.

Focus Strategy

A competitive approach where a firm concentrates its resources on entering or expanding in a narrow market segment to achieve a competitive advantage.

Market Segment

A sub-group of a larger market made up of consumers or organizations with similar characteristics that lead them to have similar product and service needs.

Niche Customer Group

A specific segment of the market targeted by businesses for their specialized product or service needs.