One of the popular myths about monopoly is that: a monopolist is a price maker.
ID: 1117536 • Letter: O
Question
One of the popular myths about monopoly is that:
a monopolist is a price maker.
a monopolist can charge any price for his/her good.
a monopolist may earn positive profits even in the long run.
a monopolist faces the market demand curve.
a monopolist is the single seller of a particular commodity.
A.a monopolist is a price maker.
B.a monopolist can charge any price for his/her good.
C.a monopolist may earn positive profits even in the long run.
D.a monopolist faces the market demand curve.
E.a monopolist is the single seller of a particular commodity.
Explanation / Answer
One of the popular myths about monopoly is that a monopolist can charge any price for his/her good.
This is because a monopolist cannot charge any price for his/her good because a monopolist is controlled by its level of demand.
Hence option B is the correct answer.
Option B ; monopolist can charge any price for his/her good
Option B ; monopolist can charge any price for his/her good
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