Which of the Following Accurately Describes a Major Difference Between

question 160

Multiple Choice

Which of the following accurately describes a major difference between a monopolist and firms in competitive price-searcher markets?

• A) A monopolist will maximize profit, while firms in competitive price-searcher markets will maximize sales.
• B) A monopolist may be able to earn long-run economic profit, but firms in competitive price-searcher markets will not be able to do so.
• C) A monopolist will charge a price that is greater than its marginal cost, but competitive price searchers will charge prices that are just equal to their marginal cost.
• D) A monopolist will charge a price that is just equal to its marginal cost, but competitive price searchers will charge prices that are greater than their marginal cost.

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Definitions:

Assimilation

The cognitive process of fitting new information into pre-existing cognitive schemas, perceptions, and understanding.

Schema

A cognitive framework or concept that helps organize and interpret information.

Grasping

The act of taking hold of something firmly with the hands or arms, which is also a reflex seen in newborns.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept developed in early infancy.