A monopoly may be self-perpetuating because profits may be used for ?
Correct answer: D. all of the above
- A. research
- B. cost-saving
- C. technical advance
- D. all of the above
Explanation
Monopoly profits can finance research, cost-saving measures, and technological improvements, which may strengthen the firm's cost or competitive advantages. Therefore, all the listed uses can help make the monopoly self-perpetuating.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
A natural monopoly has a declining _______ over a large range of output?
The reason for the kinked demand curve is that ?
The prisoners Dilemma Game demonstrates that ?
Economists use the term Black Markets for situations where ?
If the market price is below the equilibrium price ?
It is necessary to ration a good whenever ?