One of the Major Differences Between a Monopolist and a Purely

question 227

Multiple Choice

One of the major differences between a monopolist and a purely competitive firm is that the monopolist has a _____ demand curve,while the purely competitive firm has a _____ demand curve.

• A)downward-sloping;perfectly elastic
• B)perfectly inelastic;perfectly elastic
• C)downward-sloping;perfectly inelastic
• D)perfectly elastic;downward-sloping

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Definitions:

Required Return

The minimum return an investor expects to receive from an investment, taking into account the risk involved.

Recent Dividend

The latest distribution of a portion of a company's earnings to its shareholders, typically expressed as a dollar amount per share.

Growth Rate

The measure of an entity's capacity to expand over a certain period, often expressed as a percentage.

Constant Dividend

A policy where a firm aims to distribute dividends that are consistent and do not vary with its yearly earnings or profits.