Which of the Following Statements Describes a Major Difference Between

question 72

Multiple Choice

Which of the following statements describes a major difference between monopoly and perfect competition?

• A) Perfectly competitive firms can never earn economic profits; monopolistic firms always earn economic profits.
• B) Monopolistic firms emphasize cost minimization whereas perfectly competitive firms emphasize profit maximization.
• C) Monopolistic firms tend to maximize revenue while perfectly competitive firms maximize profit.
• D) Perfectly competitive firms cannot maintain positive economic profits in the long run, whereas monopolists can.
• E) Monopolists do not consider consumer demand when choosing price and output levels.

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Definitions:

Management Accountants

Professionals who specialize in providing financial data and analysis to managers within organizations to make informed business decisions.

Cost Accounting

The method of accounting that focuses on capturing a company's total cost of production by assessing its variable and fixed costs.

Managerial Accounting Report

A document that provides detailed financial information intended to help managers in decision-making processes.

Operating Costs

Expenses associated with running a business's core activities, excluding the cost of goods sold.