Which of the Following Statements Accurately Describes a Difference Between

question 44

Multiple Choice

Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?

• A) Marginal revenue and market price are equal for the competitive price taker but not for the monopolist.
• B) The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does.
• C) The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost.
• D) A monopolist can earn economic profit in the short run; a competitive price taker cannot.

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Definitions:

Concrete Concepts

Ideas or terms that refer to tangible, physical objects or phenomena that can be observed directly.

Mental Lazy

A tendency to avoid cognitively demanding tasks, opting for simpler, less effortful thinking processes.

Motivation

The process of generating and expending energy toward achieving or avoiding some outcome.

Objective Facts

information verified to be true, independent of personal feelings, interpretations, or prejudice.