-Which of the Following Is a TRUE Statement About a Monopoly

question 155

Multiple Choice

-Which of the following is a TRUE statement about a monopoly?

• A) A monopoly does not necessarily earn positive economic profits.
• B) A monopoly must earn an above-normal profit to stay in business.
• C) As long as there are barriers to entry, a monopoly can always find some price-output combination that generates positive economic profits.
• D) As long as the demand curve slopes down, a monopoly can always find some price-output combination that generates positive economic profits.

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Definitions:

Operating Activities

The business activities directly related to providing services and producing goods, including revenue and expense transactions.

Accrued Liabilities

Expenses that have been incurred but not yet paid, recognized on the balance sheet for accounting purposes.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and delivery of services.

Net Cash Provided

The amount of cash generated by a company's operations after accounting for outflows and inflows.