A major difference between a monopoly and perfect competition is that monopolies can earn an economic profit in the long run and a perfectly competitive firm cannot.

Answer the following statement true (T) or false (F)


True

Economics

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Total state and local government spending in 2007 was

a. less than $100 billion b. approximately $500 billion c. nearly $1.9 trillion d. approximately $10 trillion e. more than $25 trillion

Economics

Which of the following policies should not be used to close a recessionary gap?

A. Increases in government spending B. Tax cuts C. Increases in transfer payments D. An income tax surcharge

Economics

Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B, and each has a cost function TC = 2 + Q. Compare the firms' profits if they behave as Cournot duopolists with their profits if they form a cartel and share the market

What will be an ideal response?

Economics

A competitive firm maximizes profit at an output level of 500 units, market price is $24, and ATC is $24.50. At what range of AVC values for an output level of 500 would the firm choose not to shut down?

a. AVC > $24 b. AVC = $24 c. AVC < $24 d. cannot be determined from the given information

Economics