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Question
Which of the following is a TRUE statement about a monopoly?
A) A monopoly does not necessarily earn positive economic profits.
B) A monopoly must earn an above-normal profit to stay in business.
C) As long as there are barriers to entry, a monopoly can always find some price -output combination that generates positive economic profits.
D) As long as the demand curve slopes down, a monopoly can always find some price-output combination that generates positive economic profits.
Answer
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Related questions
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Which of the following statements is FALSE?
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.