Under Both Perfect Competition and Monopoly, a Firm

question 90

Multiple Choice

Under both perfect competition and monopoly, a firm:

• A) is a price taker.
• B) is a price maker.
• C) will shut down in the short-run if price falls short of average total cost.
• D) always earns a pure economic profit.
• E) sets marginal cost equal to marginal revenue.

---

Definitions:

Cognitive Interpretation

The process by which individuals perceive, comprehend, and make sense of the world around them, particularly how they interpret events and stimuli.

Aversive Events

Unpleasant or undesirable occurrences that individuals seek to avoid or minimize, often motivating behavior changes.

Behavioral Disengagement

A coping mechanism involving withdrawal from or reduction of effort in attempting to achieve goals when they seem unattainable.

Dropping Class

The act of formally removing oneself from an academic course during a specified period without academic penalty.