Using a Broad Definition, a Firm Would Have a Monopoly

question 159

Multiple Choice

Using a broad definition, a firm would have a monopoly if

• A)it produced a product that has substitutes.
• B)it does not have to collude with any other producer to earn an economic profit.
• C)there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
• D)it can make decisions regarding price and output without violating antitrust laws.

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Definitions:

Chocolate Factory

A production facility dedicated to the manufacturing of chocolate products from raw cocoa beans and other ingredients.

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or dam breach.

Insurance

A financial product that provides protection against potential future losses or damages in exchange for a premium.

Wealth

The abundance of valuable resources or material possessions, or the control of such assets that can be used to produce more income.