Compared to a monopolist, the demand curve for a perfectly competitive firm will be

If grocery stores in high-crime areas charge higher prices than stores elsewhere, it is because

A) each item sold must bear its share of the higher insurance costs. B) residents of high crime areas tend to be less price-conscious shoppers. C) the costs of crime are a legitimate cost of doing business. D) the store owners are not setting marginal cost equal to marginal revenue. E) there is less competition between stores in high-crime areas.

One reason for diseconomies of scale is that, at very large scales, management systems can become

A) more efficient because they can effectively manage more workers. B) increasingly complex and inefficient. C) more numerous than the workers they manage. D) none of the above.