Comparing a Pure Monopoly and a Purely Competitive Firm with Identical

question 298

Multiple Choice

Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the pure monopolist's

• A)price, output, and average total cost would all be higher.
• B)price and average total cost would be higher, but output would be lower.
• C)price, output, and average total cost would all be lower.
• D)price and output would be lower, but average total cost would be higher.

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Definitions:

Operant Conditioning

A technique of teaching that utilizes incentives and penalties to affect the probability of a behavior's recurrence.

Profit-Sharing Plan

A company program that provides employees with a share in the company's profits, typically in the form of a bonus or retirement benefits.

Worker Productivity

Refers to the amount of work or output produced by an employee in a specific period of time.

Immediate Reinforcement

The instantaneous reward given after a desired behavior, which increases the likelihood of the behavior occurring again.