One difference between a competitive firm and a monopoly is that __________________. a. monopoly makes economic profits, but a competitive firm never makes economic profits b. a monopoly faces a downward sloping marginal revenue curve, whereas a competitive firm faces a horizontal marginal revenue curve c. the cost curves of a monopoly are always below those of a competitive firm d. a monopoly always has economies of scale, but a competitive firm always has diseconomies of scale
One difference between a competitive firm and a monopoly is that __________________. a. monopoly makes economic profits, but a competitive firm never makes economic profits b. a monopoly faces a downward sloping marginal revenue curve, whereas a competitive firm faces a horizontal marginal revenue curve c. the cost curves of a monopoly are always below those of a competitive firm d. a monopoly always has economies of scale, but a competitive firm always has diseconomies of scale
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.3P
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One difference between a competitive firm and a monopoly is that __________________.
a. monopoly makes economic profits, but a competitive firm never makes economic profits
b. a monopoly faces a downward sloping marginal revenue curve, whereas a competitive firm faces a horizontal marginal revenue curve
c. the cost curves of a monopoly are always below those of a competitive firm
d. a monopoly always has economies of scale, but a competitive firm always has diseconomies of scale
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