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:

Mental Shortcuts

Cognitive strategies, also known as heuristics, used by individuals to simplify decision making by reducing complex problem solving.

Primary Research

Primary Research involves the collection of original data directly from sources or subjects through methods like surveys, interviews, and observations.

Secondary Research

Refers to the process of collecting, analyzing, and interpreting existing data and information that has already been gathered by others, often for a different purpose.

Uses and Gratification Theory

A theory that explores how individuals actively seek out media to satisfy specific needs and desires, such as information, personal identity, integration and social interaction, or entertainment.