The "Monopoly Issue" Is Concerned with the Fact That

question 6

Multiple Choice

The "monopoly issue" is concerned with the fact that

• A) monopolies will "charge what the traffic will bear" in order to maximize their profits.
• B) monopolies will attempt to increase their profits by discriminating among their customers?and charge prices that they are willing to pay, instead of charging one price.
• C) monopolies will be able to charge higher prices and earn higher rates of return than ?competitive firms.
• D) all of the above apply.

---

Definitions:

Demand Curves

A graph representing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Industry

A sector of the economy that produces goods, services, or related products, categorized by their business activities.

Long-Run Equilibrium

A state in a market where all adjustments have been made and all inputs, including physical capital and labor, can be varied to reach an optimal output level.