In the Long Run It Is Not Possible for a Perfectly

question 112

Multiple Choice

In the long run it is not possible for a perfectly competitive firm to

• A)alter its plant size.
• B)adopt new technology.
• C)replace its antiquated equipment.
• D)adjust its output.
• E)set the product price.

Recognize sources of monopoly power and natural monopolies.

Analyze the impact of monopolies on resource allocation and social welfare.

Understand how monopolists determine their profit-maximizing output and pricing strategies.

Recognize the role of economies of scale and technological advantages in creating monopolies.

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Definitions:

Intelligence

The capacity for learning, understanding, problem-solving, and adapting to new situations, often measured through various cognitive tests.

Thinking

The mental process involved in reasoning, problem-solving, and the creation of ideas.

Reliable

The consistency of a measure or instrument, indicating the same results are achieved under consistent conditions.

Standardized

Made consistent in form, procedure, or conditions, often for the purpose of comparison or assessment.