Which of the following is INCORRECT regarding monopoly and profits?
A) The mere existence of a monopoly does not guarantee high profits.
B) Numerous monopolies have gone bankrupt.
C) A monopolist will never experience economic losses.
D) The monopolist reaches profit-maximizing output by trial and error.
Answer: C
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If the marginal cost of producing every quantity decreases, all the following occur EXCEPT
A) minimum supply price does not change. B) the marginal social benefit of the last unit bought changes. C) the consumer surplus increases. D) the efficient quantity increases.
A majority of people in the United States have private health insurance
Indicate whether the statement is true or false
If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm?
a. The firm should use relatively more capital b. The firm should use relatively more labor c. The firm should not make any changes – they are currently efficient d. Using the Equimarginal Criterion, we can't determine the firm's efficiency level e. Both c and d
For a hotdog vendor, the hotdog buns represents his
A) fixed input. B) variable input. C) sunk cost. D) none of the above.