-Which of the Following Is INCORRECT Regarding Monopoly and Profits

question 139

Multiple Choice

-Which of the following is INCORRECT regarding monopoly and profits?

• A) The mere existence of a monopoly does not guarantee high profits.
• B) Numerous monopolies have gone bankrupt.
• C) A monopolist will never experience economic losses.
• D) The monopolist reaches profit-maximizing output by trial and error.

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Definitions:

Margin

The difference between the selling price of a product and its cost of production, often expressed as a percentage of sales.

Operating Data

Information related to the daily operations of a business, which can include sales figures, production costs, and inventory levels.

Margin

The difference between the selling price of a product and its cost, expressed as a percentage of the selling price, indicating the profitability of the product.

Investment Opportunity

An option for investing capital with the expectation of achieving a return, often evaluated based on potential risks and rewards.