When Comparing Perfect Competition and Monopoly, a Major Assumption Made

question 51

Multiple Choice

When comparing perfect competition and monopoly, a major assumption made is that

• A) the monopolist faces a downward sloping demand curve.
• B) consumers only care about the price of the good and not whether the seller is a monopoly or not.
• C) the costs of production are the same under monopoly as under perfect competition.
• D) the monopolist can make an above normal rate of return.

---

Definitions:

Consideration

The value (which can be a promise, an act, or an object) exchanged between parties in a contract.

Voluntary Transfer

The act of willingly transferring ownership or interest in an asset from one party to another without coercion.

Conveyance

The act of transferring ownership of property from one party to another, often involving real estate.

Gift

A voluntary transfer of property for which the donor receives no consideration in return.