Which of the Following Statements Correctly Differentiates Between a Monopoly

question 243

Multiple Choice

Which of the following statements correctly differentiates between a monopoly and a perfectly competitive firm?

• A) A perfectly competitive firm faces an upward-sloping demand curve, whereas a monopoly faces a horizontal demand curve.
• B) A perfectly competitive firm sets its product price at its marginal cost, whereas a monopoly sets the price above its marginal cost.
• C) A perfectly competitive firm faces a horizontal demand curve, whereas a monopoly faces an upward sloping-demand curve.
• D) A perfectly competitive firm sets its product price above its marginal cost, whereas a monopoly sets its product price equal to its marginal cost.

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Definitions:

Rigid

Characterized by inflexibility or strictness in structures, systems, or attitudes, potentially hindering adaptability or progress.

Genuine

refers to being truly what something is said to be; authentic and sincere in one's actions, intentions, or character.

Manipulative

Involving the skillful handling or controlling of situations or people to achieve one's own goals, often in a manner considered deceitful or unfair.

Vocalics

The nonverbal aspects of the voice, including pitch, rate, and volume.