Consider Monopoly, Monopolistic Competition, and Perfect Competition

question 97

Multiple Choice

Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm charge a price that exceeds marginal cost?

• A)monopoly only
• B)monopoly and monopolistic competition only
• C)monopoly, monopolistic competition, and perfect competition
• D)The answer cannot be determined without knowing whether the market is in the long run or short run.

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Definitions:

Functional Approach

A method or strategy that focuses on the roles, duties, and functions that entities perform within a system or organization.

Public Organizations

Entities that operate within the public sector, funded and controlled by government bodies to serve the public interest.

Private Organizations

Entities that operate independently of government control, often focusing on providing goods or services for profit.

Chain of Command

A hierarchical structure within an organization that outlines the authority and communication flow from top-level executives to lower-level employees.