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Basic Question 21 of 22

Refer to the graph below. If the price of the product is $1 and the firm is a natural monopoly, ______

A. there will be a surplus of the product.
B. the firm will earn economic profit by satisfying the market quantity demanded at that price.
C. the firm can earn profit by producing more than Qc.
D. the firm will incur losses by producing the quantity demanded at that price.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly

CFA® 2024 Level I Curriculum, Volume 1, Module 1.