Which of the Following Is a TRUE Statement About Monopoly

question 278

Multiple Choice

Which of the following is a TRUE statement about monopoly and perfect competition?

• A) Price is always higher and output higher under monopoly than under perfect competition.
• B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition.
• C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition.
• D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.

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Definitions:

Personal Pride

A feeling of self-respect and personal worth.

Role Negotiation

The process by which individuals discuss and agree upon their responsibilities, duties, and expectations within a team or organization.

Interrole Conflict

The tension or disagreement that arises when the expectations of different roles occupied by an individual are incompatible or conflicting.

Intersender Role Conflict

Intersender role conflict occurs when an individual receives conflicting demands from different sources within an organization, causing stress and confusion.