Which of the Following Statements Is Correct

question 149

Multiple Choice

Which of the following statements is correct?

• A)The benefits that accrue to a monopoly's owners are equal to the costs that are incurred by consumers of that firm's product.
• B)The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity.
• C)The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product.
• D)The primary social problem caused by monopoly is monopoly profit.

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Definitions:

Sales Department

The division within a company responsible for the sale of products and services, including marketing and customer relations.

Operating Income

The difference between gross profit and operating expenses.

Decision-Making Processes

The steps or stages involved in choosing between alternatives to reach a conclusion or determine a course of action.

Balanced Scorecard

A strategic performance measurement system that incorporates multiple performance dimensions by combining financial and nonfinancial measures.