-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:

Rationing Coupons

Tickets or coupons issued by the government or an organization, allowing the holder to purchase a fixed amount of a scarce commodity or service.

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.

Queuing System

A queuing system is a model used to analyze and manage the process by which customers wait for service or goods, focusing on efficiency and fairness.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.