The principal difference between economic profits for a monopolist and for a competitive firm is that
a. monopoly profits create major problems of equity whereas competitive profits do not.
b. competitive profits exist only in the short run whereas monopoly profits may exist in the long run as well.
c. monopoly profits represent a transfer out of consumer surplus whereas competitive profits do not.monopoly profits are considered a deadweight loss but competitive profits are not.
d. monopoly profits are considered a deadweight loss but competitive profits are not.
b
You might also like to view...
Government purchases include all of the following except:
A. the construction of a new court house built by a county government. B. the purchase of new military hardware by the U.S. Army. C. social security benefits paid by the federal government. D. the salary paid to an elementary school teacher employed by a local public school district.
Why does government provide educational opportunities in the form of vouchers, subsidies, and public provision?
What will be an ideal response?
Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is thinking of increasing the rent to $400 per month. As a result Joey's marginal cost of cutting grass will
A) increase by $100 divided by the amount of grass cut. B) increase by $100. C) decrease by $100. D) not change.
M1 and M2 are
a. usually equal b. aggregates that, when added together, encompass all methods of payment c. nonofficial measures of the U.S. money supply d. both measures of the U.S. money supply e. the best way to measure the U.S. money supply