Which of the following accurately describes a major difference between a monopolist and firms in perfectly competitive markets?
a. The monopolist maximizes profit; firms in perfectly competitive markets maximize sales
b. The monopolist may earn long-run economic profit; firms in perfectly competitive markets cannot.
c. The monopolist is a price taker; firms in other markets are price searchers.
d. The monopolist may earn short-run profit; firms in perfectly competitive markets cannot.
b
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If a firm in the long run produces less than its efficient scale, it
A) should raise its markup to increase its profit. B) should lower its markup to increase its profit. C) cannot be a perfectly competitive firm. D) should not advertise to increase its profit. E) must have its markup equal to zero.
Which of the following will cause slower growth in labor productivity?
A) decreased growth in physical capital B) decreased growth in human capital such as education and training C) decreased growth in government-financed infrastructure such as highways and airports D) A and C E) all of the above