When Comparing a Monopoly Firm and a Competitive Firm in the Long

question 97

Multiple Choice

When comparing a monopoly firm and a competitive firm in the long run,which of the following statements is not correct?

• A)A monopoly firm does not need to produce output at the lowest possible cost but a competitive firm must.
• B)A monopoly firm earns economic profit at its profit-maximizing level of output but a competitive firm does not.
• C)A monopoly firm operates at the minimum point on its average cost curve but a competitive firm does not.
• D)A monopoly firm will produce more than the efficient level of output but a competitive firm will always produce the efficient level of output.

---

Definitions:

International Sale of Goods

Refers to the sale transaction of goods between parties situated in different countries, governed by international agreements like the CISG.

Letter-of-Credit Transaction

A financial transaction in which a bank guarantees the payment of a buyer's obligations to a seller, provided that the seller meets the specified terms of the sales agreement.

Bill of Lading

A legal document between a shipper and carrier detailing the type, quantity, and destination of goods being shipped.

Contracted-for Shipment

An agreement to transport goods to a specified location under the terms of a contract.