Which of the Following Is True

question 88

Multiple Choice

Which of the following is true?

• A) If there are only two firms in a market, prices must be above marginal cost.
• B) If there is only one firm in a market, prices must be above marginal cost.
• C) Both if there are only two firms in a market, prices must be above marginal cost and if there is only one firm in a market, prices must be above marginal cost are correct.
• D) None of the answers is correct.

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Definitions:

Accumulated Depletion

The total reduction in value of a natural resource as it is extracted or used over time.

Mineral Deposit

A concentration of naturally occurring material from the earth's crust that can be extracted and processed profitably.

Expense Account

An account where costs incurred by a business, like rent, utilities, and salaries, are recorded.

Intangible Asset

An asset that lacks physical substance but offers value to a business, such as trademarks, patents, and copyrights.