Which of the following is not a difference between monopolies and perfectly competitive markets?
a. Monopolies can earn profits in the long run while perfectly competitive firms break even.
b. Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost.
c. Monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not.
d. Monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.
c
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Which of the following activities is NOT a primary concern of investment banks?
A) taking in deposits and making loans B) providing advice and financing for mergers and acquisitions C) underwriting new security issues D) providing advice on new security issues
If increasing returns is in effect
A) average costs rise. B) marginal costs rise. C) marginal costs fall. D) average revenue is constant.