Exhibit 10-5 -Which of the Following Statements Concerning a Monopoly Is False

Multiple Choice

Exhibit 10-5
-Which of the following statements concerning a monopoly is false?

A) A monopoly, like a competitive firm, will shut down when revenues are less than variable costs.
B) It is possible for a monopoly to suffer losses in the long run.
C) Monopolies cannot suffer losses.
D) A monopoly can enjoy economic profits in the long run.
E) A monopoly can suffer losses in the short run.