An Important Difference Between a Perfectly Competitive Firm and a Monopolist

question 231

Multiple Choice

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

---

Definitions:

Investment

The assignment of monetary values in the hope of making a profit or gaining income.

Interest

A fee paid for the use of borrowed funds, or for delaying the repayment of a debt.

Days

Units of time equivalent to 24 hours, often used to measure durations or intervals.

Investment

The distribution of funds or assets with the intention of earning financial returns or profits.