Unlike perfectly competitive firms, monopolists can
a. earn positive short-run economic profit even if price is less than average variable cost at all rates of output
b. sell any quantity of output at any price they choose
c. earn long-run economic profits
d. reduce the sales of other firms in the industry through advertising
e. face a perfectly elastic demand curve
C
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Refer to Scenario 12.2. This scenario has the characteristics of what game structure?
A) prisoner's dilemma B) pure coordination C) chicken D) assurance
When a rent ceiling is ________, consumer surplus and producer surplus shrink, a deadweight loss ________, and resources are lost in search activity and evading the rent ceiling law
A) inefficient; arises B) inefficient; disappears C) efficient; arises D) efficient; disappears E) nonexistent; arises