Which of the Following Statements with Respect to the Monopolist

question 54

Multiple Choice

Which of the following statements with respect to the monopolist is FALSE?

• A) A monopolist can make higher profits if it can price discriminate.
• B) A monopoly tends to result in a lower quantity being sold than perfect competition does.
• C) Monopoly is a situation in which a single firm dominates.
• D) A monopoly arises in a situation with few barriers to entry into the marketplace.

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Definitions:

Public Park

A piece of public land in urban areas designated for recreational use by the general public, often maintained by local government.

Socially Optimum

A state where resources are allocated in the most efficient way from a societal perspective, maximizing social welfare.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often discussed in the context of public goods and services.

Pigouvian Subsidy

A payment designed to encourage activities that yield external benefits.