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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