Which of the Following Statements Is True of a Monopolist

question 98

Multiple Choice

Which of the following statements is true of a monopolist?

• A)The firm charges the highest possible price.
• B)The firm always earns a profit.
• C)The firm might earn a profit in the long run.
• D)The firm generates a larger consumer surplus than a perfectly competitive firm.
• E)The firm is more production efficient than a perfectly competitive firm.

---

Definitions:

Costing Method

An approach or procedure used to assign costs to products or services, including methods like job order costing, process costing, and activity-based costing.

Days In Inventory

A financial ratio indicating the average number of days a company takes to turn its inventory into sales, reflecting inventory management efficiency.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Days In Inventory

A financial metric that indicates the average number of days a company holds inventory before it is sold, calculated by dividing inventory by cost of goods sold and multiplying by 365.