Sizable Economic Profits Can Persist Over Time Under Monopoly If

question 283

Multiple Choice

Sizable economic profits can persist over time under monopoly if the monopolist

• A)produces that output where average total cost is at a maximum.
• B)is protected by barriers to entry.
• C)operates as a price taker rather than a price maker.
• D)earns revenues that exceed variable costs.

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Definitions:

Sales Mix

The composition of different products or services sold by a company, influencing total sales and profitability.

Future Outlay

Expected future expenditures or financial obligations.

Incremental Revenues

Additional income generated from a new action or decision, beyond what is currently being earned.

Allocated Fixed Costs

Allocated fixed costs are fixed costs that have been distributed among different departments or products based on a predetermined basis.