Which of the Following Is False

question 49

Multiple Choice

Which of the following is false?

• A)A true or pure monopoly exists where there is only one seller of a product for which no close substitute is available.
• B)The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called a natural monopoly.
• C)In monopoly, the market demand curve may be regarded as the demand curve for the firm because it is the market for that particular product.
• D)A monopoly firm is a price maker, and it will pick a price that is the highest point on its demand curve.
• E)None of the above are false.

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Definitions:

Seller's Price

The price at which a seller is willing to sell a good or service, often influenced by production costs, market demand, and competitive pricing.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single entity can dictate the price or terms of products.

Pricing Constraint

Limitations or regulations affecting the determination of a product's price, including factors like cost, competition, and regulatory environment.

Consumer Demand

The desire of buyers for goods and services, influencing the quantity that the market can sell at a certain price.