Unlike a Perfectly Competitive ?Rm, a Monopolist

question 58

Multiple Choice

Unlike a perfectly competitive ?rm, a monopolist:

• A) charges a price that is equal to marginal cost.
• B) faces a perfectly elastic demand curve.
• C) has no market power.
• D) makes supernormal pro?ts in the long run.

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Definitions:

Frequency

In general terms, the rate at which something occurs over a particular period of time or in a given sample.

Actor-observer Bias

A cognitive bias that affects the way we attribute causes to our own behaviors versus those of others, often attributing our own actions to situational factors while attributing others' actions to their personality or character.

Self-serving Bias

Self-serving bias is a common cognitive bias that leads individuals to attribute their successes to internal factors while attributing failures to external factors, protecting self-esteem.

Recency Effect

The phenomenon of better remembering the most recent information presented in a series of data or events.