Which of the Following Indicates the Major Difference Between Monopolists

question 46

Multiple Choice

Which of the following indicates the major difference between monopolists and competitive price searchers?

• A) Monopolists will always be able to make economic profit; competitive price searchers will not.
• B) Barriers to entry are high under monopoly but low in competitive price-searcher markets.
• C) Monopolists will face a downward-sloping demand curve; competitive price searchers will not.
• D) Unregulated monopolists will charge prices that exceed marginal cost; competitive price searchers will not.

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Definitions:

Distillation

A process of separating components from a liquid mixture by selective boiling and condensation, commonly used in the purification of water, alcohol, and chemicals.

Hydrocarbon

is an organic compound consisting entirely of hydrogen and carbon atoms, commonly found in fossil fuels and as the basis of various organic substances.

Petroleum

A naturally occurring liquid found beneath the Earth's surface that can be refined into fuel and various chemical products.

Commercial Energy

Energy that is produced and sold commercially, often in the form of electricity, natural gas, oil, and coal.