Updated on August 6, 2022
Which of the following is true under monopoly? Profits are always positive. P > minimum of ATC. P = MR. None of the statements associated with this question are correct. Firms that produce similar, slightly differentiated products are called a(n): cartel product group oligopoly cabal oligarchy
Answer
Answer : 1) The answer is option a.
In monopoly market only one seller exist. Hence the monopolist
always charge high price on limited quantities which always create
positive profit even in long-run also. Therefore, option a is
correct.
2) The answer is option c.
Oligopoly firms always sell similar products or slightly
differentiated products. This is an assumption of oligopoly market.
Therefore, option c is correct.
