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:

Common Goal

A shared objective or aim among members of a group.

Groupthink

A phenomenon whereby a group makes faulty decisions because of group pressures, leading to a degradation of mental efficiency, reality testing, and moral judgment.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, often improving on simple or well-rehearsed tasks.

Self-Disclosure

Revealing intimate aspects of oneself to others.