Author Question: Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic ... (Read 63 times)

Lisaclaire · **on:** Jun 30, 2018

Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
a. charge a lower price than the perfectly competitive firm.
b. charge a higher price than the perfectly competitive firm.
c. charge the same price as the perfectly competitive firm.
d. refuse to operate in the short run unless an economic profit could be made.
e. refuse to operate in the short run if an economic loss was present.

Question 2

Water is plentiful in most of the world, so its price and total utility are low.
a. True
b. False
Indicate whether the statement is true or false