Consider Monopoly, Monopolistic Competition, and Perfect Competition

question 97

Multiple Choice

Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm charge a price that exceeds marginal cost?

• A)monopoly only
• B)monopoly and monopolistic competition only
• C)monopoly, monopolistic competition, and perfect competition
• D)The answer cannot be determined without knowing whether the market is in the long run or short run.

---

Definitions:

Iris

The colored part of the eye that controls the size of the pupil and thus the amount of light that enters the eye.

Light Entry

The process or manner by which light enters an area or passes through a medium.

Young-Helmholtz Theory

A theory of color vision that proposes the presence of three types of color receptors in the eye, each sensitive to red, green, or blue light.

Red-Sensitive

Red-sensitive refers to the capacity of certain cells in the retina, called cones, that are especially responsive to red light, playing a key role in color vision.