A Big Difference Between a Competitive Firm and a Monopolist

question 27

Multiple Choice

A big difference between a competitive firm and a monopolist is that a monopolist

• A) does not charge a price equal to marginal revenue.
• B) does not set marginal revenue equal to marginal cost to maximize profits.
• C) does not try to maximize profits.
• D) can always make positive economic profits.
• E) cannot set its price at the market price.

---

Definitions:

Social Norms

Shared guidelines or rules that dictate expected behaviors within a society or group.

Automatic Behaviors

Actions that are performed without conscious thought or intention, often as a result of habit or conditioning.

Social Comparison

The process of evaluating oneself by comparing with others, which can influence self-esteem and self-perception.

Performance Feedback

Evaluative information provided regarding the efficacy or quality of an individual's work output or performance.