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:

Negative Price

A situation where the seller pays the buyer to take a good or service, typically seen in unusual market conditions or to address surplus issues.

Positive Price

A situation in which the price of a good or service is above zero, indicating value and demand in a market.

Budget Line

A depicted representation of all conceivable combinations of two commodities buyable with a certain amount of money at steady prices.

Price Of Good X

The amount of money required to purchase a specific quantity of Good X, reflecting its market value at a given time.