The Differences Between a Competitive Market and a Monopoly Include

question 224

Multiple Choice

The differences between a competitive market and a monopoly include all of these except

• A)excess profits would be competed away in a competitive market, but persist in a monopolistic market.
• B)a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices.
• C)a competitive market's cost curves will shift with the market, while a monopoly's cost curves will remain stable.
• D)a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices.

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Definitions:

Swiss Francs (CHF)

The currency of Switzerland, known for its strength and stability in the financial market.

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future date at a price agreed upon today.

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery.

Sale Record

The documentation and reporting of the sale transaction details including the product or service sold, amount, and date of the sale.