Author Question: Which of the following accurately describes a major difference between a monopolist and firms in ... (Read 72 times)

javeds · **on:** Jun 30, 2018

Which of the following accurately describes a major difference between a monopolist and firms in perfectly competitive markets?
a. The monopolist maximizes profit; firms in perfectly competitive markets maximize sales.
b. The monopolist may earn long-run economic profit; firms in perfectly competitive markets cannot.
c. The monopolist is a price taker; firms in other markets are price searchers.
d. The monopolist may earn short-run profit; firms in perfectly competitive markets cannot.

Question 2

A firm's cost can decrease for each of the following reasons, EXCEPT:
a. an increase in productivity due to experience.
b. an improvement in productivity of capital employed.
c. an improvement in work environment and quality of management.
d. an increase in input prices.