One Similarity Between a Monopolist and a Perfectly Competitive Firm

question 47

Multiple Choice

One similarity between a monopolist and a perfectly competitive firm is that both

• A)are large relative to their markets.
• B)may have similarly shaped cost curves.
• C)need to know the shape of the market demand curve.
• D)can make economic profits in the long run.
• E)choose the price at which to sell their product.

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Definitions:

Public Bureaucracies

Organizations within the public sector governed by a fixed set of rules and structured hierarchically, tasked with implementing government policies.

Public Choice Theorists

Economists and political scientists who study how public decisions are made, applying theories and methods of economics to analyze political behavior and decision-making.

Market System Failure

An economic situation where the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Unfunded Liability

A future government spending commitment (liability) for which the government has not legislated an offsetting revenue source.