The Principal Difference Between Economic Profits for a Monopolist and for a Competitive

question 24

Multiple Choice

The principal difference between economic profits for a monopolist and for a competitive firm is that

• A)monopoly profits create major problems of equity whereas competitive profits do not.
• B)competitive profits exist only in the short run whereas monopoly profits may exist in the long run as well.
• C)monopoly profits represent a transfer out of consumer surplus whereas competitive profits do not.monopoly profits are considered a deadweight loss but competitive profits are not.
• D)monopoly profits are considered a deadweight loss but competitive profits are not.

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Definitions:

Transference

In psychotherapy, the process by which patients project feelings and attitudes from a past relationship onto their therapist.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation paired with relaxation exercises.

Skills Training

The process of teaching and developing specific abilities or techniques to improve performance and efficiency in various tasks.

Flooding

A psychological treatment method where an individual is exposed to a large amount of an anxiety-producing stimulus in order to extinguish the fear response.