What is true for monopoly that is not true for perfect competition?
a. The industry demand curve is downward sloping.
b. Profit is maximized where MR = MC.
c. The firm and the industry are exactly the same entity.
d. Positive economic profits may be earned in the short run.
c
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The relationship between distance traveled in 5 hours and speed shown in the figure above is
A) direct, linear. B) inverse, linear. C) direct, non-linear. D) inverse, positive. E) direct, negative.
Does correlation always imply causation? Why or why not? Explain with the help of real-life examples
What will be an ideal response?
If the Fed does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy
A) it is likely to increase GDP too little and cause a recession B) it is likely to decrease GDP too little and inflation will persist C) it is likely to decrease GDP too much and cause a recession D) it is likely to increase GDP too much and inflation will persist
Why is a monopoly inefficient?
What will be an ideal response?