The Following Question Are Based on the Following Diagram of a Monopolist

question 63

Multiple Choice

The following question are based on the following diagram of a monopolist:

-If the product demand curve and cost functions of a perfectly competitive industry and a monopolist are the same,then compared to a monopoly,the perfectly competitive industry's output and price tend to be,respectively

• A) larger and higher.
• B) smaller and higher.
• C) larger and lower.
• D) smaller and lower.
• E) the same and lower.

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Definitions:

National Banks

National banks are financial institutions chartered by the federal government of a country, authorized to provide a variety of banking services, including accepting deposits, making loans, and issuing currency.

Interest-rate Ceilings

Regulatory limits placed on the maximum interest rates that can be charged on loans, intended to protect borrowers.

Bank Profits

The earnings generated by banks, derived from the difference between the interest paid on deposits and the interest received from loans.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at commercial banks and savings institutions.