Author Question: Which of following is true of monopoly and not of perfect competition? a. Profit is maximized where ... (Read 90 times)

xclash · **on:** Jun 30, 2018

Which of following is true of monopoly and not of perfect competition?
a. Profit is maximized where marginal cost equals marginal revenue
b. The industry demand curve is also the firm's demand curve
c. Normal profits are made only if average total cost equals average revenue
d. Profit is maximized in the elastic portion of the demand curve
e. the firm has no control over the market price

Question 2

A regulated natural monopoly that must set price equal to average cost will
a. suffer an economic loss
b. earn a net economic profit
c. earn a normal profit
d. earn so little that it will close in the long run
e. earn no profits of any kind