Which of the Following Best Explains Why There Is No

question 66

Multiple Choice

Which of the following best explains why there is no meaningful supply curve for a monopolist?

• A)The monopolist is the only supplier.
• B)Price is exogenous to the monopolist.
• C)The monopolist is already maximizing profits; thus, it doesn't need a supply curve.
• D)Price is endogenous. That is, the monopolist determines both quantity and price. Hence, there is no longer a unique association between price and quantity supplied.

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Definitions:

Effective Interest Method

A method of calculating the amortized cost of a financial asset or liability and allocating the interest income or expense over the relevant period.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period, usually expressed as an annual percentage of the principal.

Amortization Assumption

The accounting practice of gradually writing off the initial cost of an intangible asset over its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on any form of debt over a given period.