Which Statement About Monopoly Equilibrium and Perfectly Competitive Equilibrium Is

question 42

Multiple Choice

Which statement about monopoly equilibrium and perfectly competitive equilibrium is INCORRECT?

• A)Price is greater than marginal cost in monopoly,and price equals marginal cost in perfect competition.
• B)When a monopoly exists,the consumer surplus from the market is less than it would be if the same market were perfectly competitive.
• C)Monopoly output will be less than will the output of a comparable perfectly competitive industry.
• D)In the long run,economic profits are driven to zero in both a monopoly and a perfectly competitive market.

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Definitions:

Nearest Exit

The closest point of egress from a building, vehicle, or area, often highlighted as part of safety protocols.

Large Audience

A substantial number of viewers, listeners, or spectators gathered for an event or through a broadcast media platform.

No Free Lunch

A principle asserting that everything has a cost, and nothing valuable can be obtained without effort or exchange.

Economists

Professionals who study, develop, and apply theories and concepts from economics to analyze data and understand economic issues and trends.