The Reason a Monopoly Produces Less Than a Competitive Industry

question 77

Multiple Choice

The reason a monopoly produces less than a competitive industry with identical costs is that

• A)in a competitive industry there are more firms, which leaves more money available for production.
• B)There is not enough information to answer this question.
• C)competitive firms' marginal revenue equals marginal cost, so the industry produces at the point at which demand and marginal cost cross instead of the point at which marginal revenue and marginal cost cross.
• D)monopolies are usually regulated industries, and the government limits production.
• E)production costs are always higher for monopolies than for competitive firms.

---

Definitions:

Resistance

The act of opposing or standing against certain ideas, changes, or directives, often seen in organizational or social contexts.

Persuade

The act of convincing someone to do or believe something through reasoning or argument.

Request

The act of politely or formally asking for something.

Inspirational Appeal

An influence tactic that seeks to motivate and engage others by appealing to their emotions or ideals.