In the Short-Run,the Similarity Between a Monopolist and a Monopolistically

question 116

Multiple Choice

In the short-run,the similarity between a monopolist and a monopolistically competitive firm is that

• A)they both make the same decisions about the level of output and output price.
• B)they both face an upward-sloping supply curve for their products.
• C)they both try to maximize their total revenues.
• D)they both try to minimize their average fixed costs.
• E)they set the price such that marginal revenue equals average total cost.

---

Definitions:

Money Market Funds

Investment funds that invest in short-term debt securities, such as treasury bills and commercial paper, offering investors high liquidity with a relatively low level of risk.

Prime Institutional

High-quality services or investment products catered to large institutional investors, typically offering premier levels of performance and service.

Construction Loans

Short-term loans used to finance the building of a property, with funds released incrementally as construction progresses.

Mortgage Trust

A type of investment trust that pools mortgage loans, offering investors a share in the income generated from these mortgages.