Which One of the Following Characteristics Is Not Shared by Single-Price

question 70

Multiple Choice

Which one of the following characteristics is not shared by single-price monopoly and monopolistic competition?

• A)Firms face a downward-sloping demand curve.
• B)Profit-maximizing quantity occurs where MC = MR.
• C)Price charged is the highest consumers are willing to pay.
• D)Firms make an economic profit in the long run.
• E)The marginal revenue curve lies below the demand curve.

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Definitions:

Negative Externalities

Costs that result from an activity or transaction and affect third parties who did not choose to incur that cost.

Quantity Decrease

A reduction in the amount or number of a particular good or service that is available or being produced.

Efficiency Losses

The reduction in economic efficiency due to imbalances or distortions in the market, often manifesting as excess or insufficient production and consumption.

Output Level

The quantity of goods or services produced by a firm or economy in a given period.