Which of the Following Is TRUE for Both Monopoly and a Perfectly

question 285

Multiple Choice

Which of the following is TRUE for both monopoly and a perfectly competitive firm?

• A) The demand for the individual firm's product is perfectly elastic.
• B) Economic profits can be sustained indefinitely over time.
• C) The marginal revenue curve is horizontal at the market equilibrium price.
• D) Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost.

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Definitions:

Zero-balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in amounts only large enough to cover checks presented.

Surplus Cash

Excess cash that a company holds over and above the minimum operational funds required, often used for investment, dividends, or buybacks.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, wherein the payments are sent directly to a post office box, thereby speeding up collection times.

Processing Time

The amount of time required to complete a specific process or task, often related to manufacturing or computational operations.