Under Both Perfect Competition and Monopoly, a Firm

question 90

Multiple Choice

Under both perfect competition and monopoly, a firm:

• A) is a price taker.
• B) is a price maker.
• C) will shut down in the short-run if price falls short of average total cost.
• D) always earns a pure economic profit.
• E) sets marginal cost equal to marginal revenue.

---

Definitions:

Employee Deductions

Amounts withheld from an employee's paycheck, often for taxes, insurance premiums, retirement contributions, and other benefits.

Form 941

A quarterly federal tax form filed by employers to report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks.

Form 941 Taxes

Federal tax form used by employers to report quarterly income taxes, social security tax, or Medicare tax withheld from employee's paychecks.

Total State Income Tax

The sum of all income taxes imposed by a state government on individual and business income.