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Facebook Is A__________

question 8

Multiple Choice

Facebook is a__________.

Understand the basic concepts of monopoly, including demand, revenue, and cost structures.

Analyze the profit-maximizing behavior of monopolists and the determination of output and pricing.

Identify and calculate areas representing economic profits, losses, and deadweight losses in monopoly diagrams.

Compare and contrast monopoly with competitive markets in terms of efficiency and social welfare.

Definitions:

Listed Call Option

An option that gives the holder the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time period, traded on a formal exchange.

Exercise Price

The cost at which the possessor of an option is able to purchase (in the case of a call option) or dispose of (in the case of a put option) the underlying asset.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall market capitalization remains unchanged.

Call Option

An economic agreement that grants the buyer the option to acquire an asset such as a stock, bond, commodity, or similar at an agreed-upon price before a certain deadline, without being compelled to do so.