Which Statement Is False

question 109

Multiple Choice

Which statement is false?

• A)Once a monopoly is set up,it is possible to dislodge it.
• B)Some monopolists have control over an essential resource.
• C)Several competing firms can provide cheaper service than a natural monopoly.
• D)As a firm grows larger,at first it realizes economies of scale,but eventually diseconomies of scale set in.

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Definitions:

Monopoly

A market structure where a single firm controls the entire market for a good or service, with no close substitutes available.

Market Price

The present rate at which a product or service is being traded in the market.

Perfectly Competitive

A market structure where many firms offer products or services that are similar, leading to no single firm having significant market power.

Total Market

The total market refers to the entire demand for a specific good or service within a given geographic area or industry.