Which of the Following Statements Is True

question 95

Multiple Choice

Which of the following statements is true?

• A) One reason a monopoly can earn economic profits is because it can raise price and restrict output.
• B) A perfectly competitive firm can earn economic profits because it can raise price and restrict output.
• C) Income is transferred from producers to consumers in a monopoly compared to perfect competition.
• D) Monopolists who price-discriminate rarely earn positive economic profits in the long run.

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Definitions:

Pupil Spending

The amount of funding allocated per student within educational institutions, often discussed in the context of assessing educational quality and equity.

Black and Latino

Pertaining to individuals of African and Latin American descent respectively.

Intermarriages

Marriages between spouses of different racial, ethnic, religious, or cultural backgrounds, reflecting trends in societal integration and diversity.

Racial-gender Stereotypes

Preconceived and oversimplified beliefs about individuals based on their race and gender, often leading to discrimination and inequality.