Competitive Firms Differ from Monopolies in Which of the Following

question 407

Multiple Choice

Competitive firms differ from monopolies in which of the following ways? (i)
Competitive firms do not have to worry about the price effect lowering their total revenue.(ii)
Marginal revenue for a competitive firm equals price, while marginal revenue for a monopoly is less than the price it is able to charge.(iii)
Monopolies must lower their price in order to sell more of their product, while competitive firms do not.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(i) and (iii) only
• D)(i), (ii), and (iii)

---

Definitions:

Agribusiness

The business sector encompassing farming and farming-related commercial activities, involving the production, distribution, and marketing of agricultural goods.

Government Policies

Rules, regulations, and actions taken by a government to control or influence its country's economy or society.

Price Subsidies

Financial assistance provided by governments to lower the cost of goods or services, making them more accessible to consumers.

Income Subsidies

Income subsidies are financial assistance programs provided by governments to individuals or households to help them afford essential needs, thereby increasing their income.