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:

Covariance

A measure indicating the extent to which two random variables change in tandem.

Covariance

A measure that indicates the extent to which two variables change together, showing if increases in one variable correspond to increases or decreases in another.

Degrees Of Freedom

The number of values in the calculation of a statistic that are free to vary, often related to the sample size.

Pearson Correlation

A measure of the linear correlation between two variables, giving a value between -1 and 1 inclusive, where 1 is total positive linear correlation, 0 is no linear correlation, and -1 is total negative linear correlation.