A profit maximizing monopolist
A) is guaranteed to lose money because of a lack of competition.
B) is not guaranteed to make a positive profit.
C) is guaranteed to make a positive profit, hence the desire to be a monopolist.
D) is guaranteed to make a non-negative profit, otherwise government would step in to assist.
B
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Absolute advantage occurs when one producer has greater productivity compared to another producing the same product
Indicate whether the statement is true or false
What factors can start a cost-push inflation? What must the Fed's response be for the inflation to continue?
What will be an ideal response?
If the nominal interest rate is less than the real interest rate, we know that
A) both the nominal or real interest rate must be negative. B) the nominal interest rate must be equal to expected inflation. C) expected deflation must be occurring. D) expected inflation must be positive. E) expected inflation must be zero.
If an economy is producing on its production possibility frontier but is not producing what people want, the economy
A. is not achieving output efficiency. B. is producing at more than one point on the production possibility frontier. C. is not being productively efficient. D. is experiencing technological advancement.