In Both Perfect Competition and Monopoly,a Firm

question 28

Multiple Choice

In both perfect competition and monopoly,a firm:

• A) maximizes profit by equating marginal revenue to marginal cost.
• B) will shut down in the short run if price is less than average variable cost.
• C) will always earn a zero economic profit.
• D) will be characterized by both (a) and (b).

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Definitions:

Moral Responsibility

The obligation to act rightly or to hold oneself accountable for actions, especially concerning ethical and societal standards.

Film Noir

A genre of film characterized by its dark, pessimistic atmosphere and themes, involving crime, moral ambiguity, and complex character motivations, often shot in black and white.

Optimistic Escape

A narrative ending or theme within a story that presents a hopeful resolution despite challenging circumstances.

Good-hearted Woman

A term often used to describe a woman who is kind, compassionate, and altruistic, frequently depicted as a character trait in literature and film.