Which of the following is true?
A)Monopolists never lose money regardless of short-run or long-run.
B)Monopolies can be overcome by market forces or by government action.
C)The most efficient output is found where MC and MR cross.
D)Legal barriers are the basis for monopoly in the automobile industry.

Question

Quizplus · Accepted Answer

Monopolies can be overcome by market forces or by government action, such as antitrust laws or regulation. Option A is incorrect as monopolists can potentially lose money in the long run if they don't adapt to changing market conditions. Option C is true as it represents the profit-maximizing level of output for a firm. Option D is incorrect because the basis for the monopoly in the automobile industry is not legal barriers, but rather high barriers to entry due to the capital-intensive nature of the industry.

Which of the Following Is True