Which Statement About the Differences Between Monopoly and Perfect Competition

question 163

Multiple Choice

Which statement about the differences between monopoly and perfect competition is INCORRECT?

• A)A monopolist has market power,while a perfect competitor does not.
• B)Unlike a perfectly competitive firm,a monopoly can make positive economic profits in the long run.
• C)A monopoly will charge a higher price and produce a smaller quantity than will a competitive market with the same demand and cost structure.
• D)Monopoly profits can continue in the long run because the monopoly produces more and charges a higher price than does a comparable perfectly competitive industry.

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Definitions:

Tort Action

A legal proceeding arising from a wrongful act, leading to civil liability, rather than stemming from a contract dispute or criminal case.

Compensation

Payment or reward given for services rendered or damages incurred.

Tortfeasor

A person or party that has committed a tort, which is a wrongful act leading to legal liability.

Intentional Tort

An Intentional Tort is a civil wrong resulting from an intentional act on the part of the tortfeasor (wrongdoer) that causes harm to another.