Which of the Following Is True of Monopoly but Not

question 22

Multiple Choice

Which of the following is true of monopoly but not true of perfect competition?

• A) Firms can potentially earn economic profits in the short run.
• B) Total revenue is the product of price times the quantity sold.
• C) Firms can potentially earn economic profits in the long run.
• D) A profit-maximizing firm will shut down if price falls below the average variable cost.

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Definitions:

Price Cheeseburger

The amount of money required to purchase a cheeseburger in a given market or location.

Excess Demand

A situation in a market where the quantity demanded of a good or service surpasses the quantity supplied at the current price.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

DVD Players

Electronic devices designed to play discs using the Digital Versatile Disc (DVD) format, often used for movies and other digital content.