11. Which of the following is a TRUE statement about a monopoly? A) As long as t

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11. Which of the following is a TRUE statement about a monopoly?
A) As long as there are barriers to entry, a monopoly can always find some price-output combination that generates positive economic profits.
B) As long as the demand curve slopes down, a monopoly can always find some price-output combination that generates positive economic profits.
C) A monopoly must earn an above-normal profit to stay in business.
D) A monopoly does not necessarily earn positive economic profits.

12. Which of the following is NOT a condition for price discrimination to exist?
A) identification of buyers with differing elasticities
B) unpatented product or the service
C) downward sloping demand curve faced by the firm
D) ability to prevent the resale of the product or service

13. For a firm to become a monopoly in an industry,
A) the firm will engage in unfair practices to drive all competitors out of the market.
B) the firm must produce a faulty product.
C) barriers to entry must exist.
D) the firm must charge higher prices than its competitors.

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Explanation / Answer

C,B,A

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