Which of the following statements is true regarding the difference between a monopolist and a perfectly competitive firm?
a. Competitive price is higher than the price charged by a monopolist.
b. Supply of output is higher in case of a monopoly than if the market is competitive.
c. A monopoly can choose its price while a competitive firm is a price taker.
d. A market characterized by competition has a higher deadweight loss.
C
Economics
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If a monopolist faced a downward sloping average cost curve that lies fully above market demand, he will not produce if he can only charge a single per-unit price, but it would also be inefficient for him to produce.
Answer the following statement true (T) or false (F)
Economics
Rent-seeking behavior creates:
A. waste and inefficiency. B. waste, but is efficient. C. inefficiencies, but not waste. D. efficiency without waste.
Economics