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Which of the Following Statements Is True of a Monopolist

Question 98

Multiple Choice

Which of the following statements is true of a monopolist?


A) The firm charges the highest possible price.
B) The firm always earns a profit.
C) The firm might earn a profit in the long run.
D) The firm generates a larger consumer surplus than a perfectly competitive firm.
E) The firm is more production efficient than a perfectly competitive firm.

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