Which of the Following Is True of a Monopolist in the Short

question 2

Multiple Choice

Which of the following is true of a monopolist in the short run?​

• A)It can charge whatever price it wants.
• B)It charges more than what consumers are willing to pay.
• C)It is constrained by marginal cost in setting price.
• D)It is constrained by consumer demand in setting price.
• E)It always earns an economic profit.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers at those prices.

Loanable Funds

The funds in financial systems available for borrowing, which consist of household saving, business saving, government budget surpluses, and bank loans.

Loan Period

is the duration over which a borrower is obligated to repay a loan, from the initiation of the loan to the final payment.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.