An important difference between a perfectly competitive firm and a monopolist is that
a. the perfectly competitive firm tends to be larger
b. only the monopolist attempts to maximize profit
c. only the perfectly competitive firm maximizes profit
d. the perfectly competitive firm faces a horizontal demand curve and the monopolist faces a downward-sloping demand curve
e. only the monopolist maximizes profit at the quantity where marginal cost equals marginal revenue
D
You might also like to view...
Countries with more independent central banks tend to have
A) higher inflation rates. B) lower inflation rates. C) lower rates of unemployment. D) higher rates of GDP growth.
Consider indifference curves for goods X and Y. Suppose we plot the quantity of good Y on the vertical axis and the quantity of good X on the horizontal axis
a. Why are indifference curves downward sloping? b. What is the economic interpretation of the slope of an indifference curve? c. Following what we learned in the Appendix to this chapter, indifference curves would flatten out as someone consumes more of good X and less of good Y. What are we assuming when we draw indifference curves that become flatter?
Consider a potato farmer whose cost of production is $2.25 a bushel. In May, she expects that the potato when harvested in July will sell for either $2 a bushel or $3.00. She could avoid the probability of a loss by contracting to deliver the potatoes in July at $2.50. Such a contract is traded in a
a. futures market. b. spot market. c. portfolio market. d. diversified market.
A decrease in the price of baseball bats will decrease the demand for baseballs
a. True b. False Indicate whether the statement is true or false