Which of the Following Statements Describes a Major Difference Between

question 120

Multiple Choice

Which of the following statements describes a major difference between monopoly and perfect competition?

• A)Perfectly competitive firms cannot maintain positive economic profits in the long run,whereas monopolists can.
• B)Monopolists do not consider consumer demand when choosing price and output levels.
• C)Monopolistic firms tend to maximize revenue while perfectly competitive firms maximize profit.
• D)Monopolistic firms emphasize cost minimization whereas perfectly competitive firms emphasize profit maximization.
• E)Perfectly competitive firms can never earn economic profits; monopolistic firms always earn economic profits.

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Definitions:

Referent Power

Influence derived from others' identification with, attraction to, or respect for the power-holder.

Coercive Power

The ability to control others through the threat of punishment or the actual infliction of unpleasantness.

Agentic State

A psychological condition in which an individual defers to authority and acts on the orders of that authority, even against their own conscience.

Autonomy

The capacity to make an informed, uncoerced decision; in social contexts, it refers to the self-governance or independence of individuals or groups.