An Important Difference Between Perfect Competition and Monopoly Is

question 20

Multiple Choice

An important difference between perfect competition and monopoly is

• A) a monopoly is profitable and a perfect competitor is not.
• B) the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve.
• C) the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve.
• D) a monopoly is not regulated by the market, while a perfect competitor is regulated by the market.

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Definitions:

Goodwill

The intangible asset represented by a business's value that exceeds its tangible assets, often arising from brand reputation, customer relations, or patents.

Concepts

Fundamental ideas or general notions that form the foundation of thinking, understanding, or creating in various domains.

Public Issue

The offering of shares by a company to the public in order to raise capital.

Legislative Process

The legislative process involves the steps through which a bill becomes law, including drafting, discussion, approval, and enactment by a legislative body.