Which of the Following Is TRUE

question 235

Multiple Choice

Which of the following is TRUE?

• A) Monopoly results in a higher quantity of output being sold compared with perfect competition.
• B) Price discrimination occurs when there are differences in prices that reflect differences in marginal cost.
• C) Charging all customers the same price when costs vary can actually be a case of price discrimination.
• D) Price discrimination guarantees that the monopolist will make a profit.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its treasury.

Earnings Per Share

A financial metric that measures the amount of net income earned per share of a company's outstanding stock.

Stockholders' Equity

The remaining interest in a company's assets once liabilities have been subtracted, signifying the ownership stake.

Earnings Per Share

A measure of a company's profitability, calculated by dividing the company's net income by the number of outstanding shares of its common stock.