Which one of the following about a monopoly is false?
A) A monopoly could make profits in the long run.
B) A monopoly could break even in the long run.
C) A monopoly must have some kind of government privilege or government imposed barrier to maintain its monopoly.
D) A monopoly status could be temporary.
Answer: C
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The term "market" in economics refers to
A) a group of buyers and sellers of a product and the arrangement by which they come together to trade. B) a legal institution where exchange can take place. C) an organization which sells goods and services. D) a place where money changes hands.
The height of the market demand curve
a. at any quantity shows the value — to someone — of the last unit of the good consumed b. shows the market value of a good or service c. increases as more of a good or service is consumed d. shows the cost of producing each unit of a good or service e. measures the side payment necessary to achieve economic efficiency
Barriers to entry in a perfectly competitive industry
a. are nonexistent b. are impossible to overcome c. are possible to overcome, but more difficult an obstacle to entry than are barriers in monopolistic competition d. result from patents and economies of scale e. are essentially financial rather than technical
If you go to the bank and notice that a dollar buys more Japanese yen than it used to, then the dollar has
a. appreciated. Other things the same, the appreciation would make Americans less likely to travel to Japan. b. appreciated. Other things the same, the appreciation would make Americans more likely to travel to Japan. c. depreciated. Other things the same, the depreciation would make Americans less likely to travel to Japan. d. depreciated. Other things the same, the depreciation would make Americans more likely to travel to Japan.