Both Monopolies and Competitive Firms

question 159

Multiple Choice

Both monopolies and competitive firms

• A) are price takers.
• B) are price makers.
• C) face barriers to entry.
• D) make long-run economic profits.
• E) try to maximize profits.

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Definitions:

Value-Based Pricing

A pricing strategy which sets prices primarily on the perceived value to the customer rather than on the cost of the product or historical prices.

Useful Life

The estimated duration of time that an asset is expected to remain functional and productive for its intended purposes.

Preventive Maintenance

Maintenance activities performed on a scheduled basis to prevent the failure or breakdown of machinery, equipment, or systems.

Selling Price

The amount of money for which a product or service is sold to consumers.