Which of the Following Statements Is True

question 82

Multiple Choice

Which of the following statements is true?

• A)If a tax is imposed on a product sold by a monopolist, the monopolist will maximise its profits by producing where marginal revenue equals marginal cost.
• B)A monopolist will always charge the highest possible price.
• C)If a tax is imposed on a product sold by a monopolist, the monopolist can increase its price to pass along the entire tax to consumers.
• D)Because a monopolist faces no competition, the demand for its product is perfectly inelastic.

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Definitions:

Objective Function

A mathematical function used in various optimization problems that describes the problem's objective, usually maximization or minimization.

Maximize Total Profit

The process of adjusting inputs and decision variables to achieve the highest possible monetary gain in a business operation or economic model.

Labor Used

The amount of work effort, measured in time or productivity units, utilized in the production of goods or services.

Swivel Chairs

Office or household chairs designed with a base that allows the seat to rotate 360 degrees, enhancing mobility and comfort.