A Monopoly's

question 38

Multiple Choice

A monopoly's

• A)supply curve is the same as its marginal cost curve
• B)supply curve is the same as its marginal revenue curve
• C)marginal cost curve is downward sloping
• D)demand curve is horizontal
• E)marginal revenue curve is downward sloping

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Definitions:

Discontinue

To stop making or providing a product or service, often as a strategic decision by a company.

Sunk Cost

Expenses that have already been incurred and cannot be recovered or altered, which should not affect future business decisions.

Materials Costs

The expense incurred by acquiring raw materials necessary for producing goods, excluding indirect materials like maintenance supplies.

Processing Costs

Expenses related to the steps involved in transforming raw materials into finished goods.