The Main Difference Between a Monopoly and a Competitive Firm

question 18

Multiple Choice

The main difference between a monopoly and a competitive firm is that

• A)they have differently-shaped cost curves.
• B)a monopoly can change its output, whereas a competitive firm cannot.
• C)with a monopoly there is a market demand, whereas with a competitive firm there is only firm demand.
• D)a monopoly is not concerned with market price.
• E)a monopoly can affect market price, whereas a competitive firm cannot.

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Definitions:

Machinery

Refers to machines or automated systems that contribute to the manufacturing or production process.

United States

A country located in North America consisting of 50 states and is known for its large size and diverse population.

Petroleum

A naturally occurring, yellowish-black liquid found in geological formations beneath the Earth's surface, commonly refined into various types of fuels.

Opportunity Cost

The cost of choosing one option over another, representing the benefits foregone from not choosing the next best alternative.