Which of the following statements is TRUE about the price that a monopolist charges?
A) The price is the same as the price that would be charged if there was perfect competition.
B) The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs.
C) The value that society places on the last unit produced in a monopoly is greater than its cost.
D) Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set.
C
You might also like to view...
A company that retains a high bond rating during a recession in which many other companies see their bond ratings cut will experience
A) an increased flow of funds into the market for its securities. B) an increased demand for its securities, resulting in a higher expected return. C) a decreased demand for its securities, resulting in a lower expected return. D) a decreased flow of funds into the market for its securities.
If potential GDP for the third quarter of 2012 = $20.4 billion, and the deviation from potential GDP for the third quarter of 2012 = -$1.6 billion, then the output gap was
A) -7.8%. B) -12.8%. C) -18.8%. D) -32.6%.
The Land Ordinances of 1785 and 1787 included provisions for all of the following except:
a. surveys prior to sale of Western land. b. the number of states that could be created from the Northwest Territory. c. guidelines for the eventual creation of Western states. d. sale of the land in plots of one square mile. e. All of the above were provisions of the ordinances.
What is the primary disadvantage for a firm that obtains financial capital through a bank loan?
a. Having to make scheduled interest payments b. Losing control of its operations to bank stockholders c. Being monitored by the Securities and Exchange Commission d. Selling off ownership of the company until the loan is repaid