A monopoly

Question $1$ options:

a$)$

can set the price it charges for its output and earn unlimited profits.

b$)$

takes the market price as given and earns small but positive profits.

c$)$

can set the price it charges for its output but faces a downward$-$sloping demand curve so it cannot earn unlimited profits.

d$)$

can set the price it charges for its output but faces a horizontal demand curve so it can earn unlimited profits.