When comparing perfect competition and monopoly, a major assumption made is that
A. consumers only care about the price of the good and not whether the seller is a monopoly or not.
B. the costs of production are the same under monopoly as under perfect competition.
C. the monopolist can make an above normal rate of return.
D. the monopolist faces a downward sloping demand curve.
Answer: B
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A) total revenue is unchanged when the firm lowers its price. B) total revenue decreases when the firm lowers its price. C) marginal revenue is positive. D) marginal revenue is zero.
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A) benefit; 401(k) B) benefit; Keogh C) contribution; 401(k) D) contribution; Keogh
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