Which of the Following Statements Is Not Correct

question 102

Multiple Choice

Which of the following statements is not correct?

• A)A monopolist's ability to act as a price setter guarantees economic profits in the short run.
• B)The monopolist's marginal revenue is less than the price for any output greater than one.
• C)A monopolist's demand curve is the same as the market demand curve for the product.
• D)In the long run,a monopolist will experience only positive or zero economic profits.

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Definitions:

Creditors' Risk

The risk faced by lenders that borrowers may default on their debt obligations, potentially leading to financial losses.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Owner's Equity

Owner's equity represents the owner's claims on the assets of the business, calculated as total assets minus total liabilities.

Creditors' Risk

The level of risk that creditors face regarding the possibility of not receiving back the principal and/or interest on loans issued to borrowers.