Which of the Following Statements Is FALSE

question 101

Multiple Choice

Which of the following statements is FALSE?

• A) Other things being equal, society's overall well-being is reduced when a perfectly competitive industry is monopolized.
• B) When both a perfectly competitive industry and a monopolist face the same production costs and the same market demand curve,the monopolist offers a lower level of output for sale.
• C) The profit-maximizing monopolist will always produce only along the inelastic portion of the demand curve, whereas equilibrium in a perfectly competitive industry always occurs along the elastic portion of the demand curve.
• D) When both a perfectly competitive industry and a monopolist face the same production costs and the same market demand curve, the monopolist charges a higher price for its product than what would be charged in a perfectly competitive situation.

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Definitions:

Net Proceeds

The amount of money made on a stock trade after the brokerage fees are paid.

Broker Fee

A flat fee or commission that a stockbroker charges for trade stocks.

Fractional Share

A portion of a single share of a company, allowing investment in smaller amounts than the full share price.

Capital Gain

The profit from the sale of assets such as stocks, bonds, or real estate, which exceeds the purchase price.