If We Compare a Perfectly Competitive Market to a Single-Price

question 175

Multiple Choice

If we compare a perfectly competitive market to a single-price monopoly with the same costs,the monopoly sells

• A) the same quantity at a higher price.
• B) a smaller quantity at a higher price.
• C) a larger quantity at a lower price.
• D) a larger quantity at a higher price.
• E) a smaller quantity at the same price.

---

Definitions:

Least-Cost Production

An economic principle where firms seek to produce their output at the minimum possible cost to maximize efficiency and profitability.

Inward Shift

A movement towards the origin of a supply or demand curve, indicating a decrease in supply or demand for a product.

Production Possibilities Curve

A graph representing the maximum combination of goods and services that can be produced with available resources and technology.

Emigration

The act of leaving one's own country to settle permanently in another.