Assuming That Average Costs Are the Same in Both Circumstances,all

question 29

Multiple Choice

Assuming that average costs are the same in both circumstances,all of the following statements except one are true regarding the long-run comparison between monopoly and perfect competition.Which is the exception?

• A)The monopoly price will be higher than the competitive price.
• B)The monopoly quantity will be lower than the competitive quantity.
• C)The monopoly produces below capacity whereas the competitive firm produces at capacity output.
• D)The monopoly may be making economic profits whereas the competitive firm will not.
• E)The total costs of production for the monopolist will be greater than for the competitive firm.

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Definitions:

Social Trap

A situation where a group or individual acts in a way that benefits them in the short term but ultimately leads to a situation that is damaging to all parties in the long term.

Collective Destruction

The act of a group causing harm or damage intentionally or unintentionally, often through a shared ideology or goal.

Reciprocity Norm

A social norm that expects individuals to respond to each other in kind, rewarding kind actions with kindness.

Ethnic Groups

Socially defined categories of people who identify with each other based on common ancestral, cultural, national, or historical experience.