Which of the Following Statements About Monopoly Equilibrium and Perfectly

question 104

Multiple Choice

Which of the following statements about monopoly equilibrium and perfectly competitive equilibrium is INCORRECT?

• A) Price is greater than marginal cost in monopoly, and price equals marginal cost in perfect competition.
• B) When a monopoly exists, the consumer surplus is less than if the market were perfectly competitive.
• C) Monopoly output will be less than the output of a comparable perfectly competitive industry.
• D) In the long run, economic profits are driven to zero in both a monopoly and a perfectly competitive market.

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Definitions:

Rationalizations

The process of attempting to logically justify behaviors or attitudes with plausible but not always genuine reasons.

Criminals

Individuals who have committed actions that violate laws and are therefore subject to legal penalties.

Participant Observation

A qualitative research method in which the researcher immerses themselves in the environment they are studying, participating in the activities while observing the setting and individuals within it.

Validation

The process of confirming or verifying something as true, correct, or compliant with standards.