Suppose a monopolist and a perfectly competitive firm both have the same cost curves. The monopolist 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, unlike the perfectly competitive firm
e. refuse to operate in the short run if an economic loss was present, unlike the perfectly competitive firm
B
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A firm's net income is also its accounting profit
Indicate whether the statement is true or false
Derek has $1 to spend at the grocery store. An apple, an orange, and a banana cost $0.50 each. If Derek's MUA/PA (ratio of marginal utility to price) of an apple is 45, MUO/PO of an orange is 38, and MUB/PB of a banana is 52, he will purchase a(n) _____ first and a(n) _____ second
a. apple; orange b. orange; apple c. banana; orange d. banana; apple e. orange; banana