The differences between a competitive market and a monopoly include all of these except:
a. excess profits would be competed away in a competitive market, but persist in a monopolistic market
b. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices
c. a competitive market's cost curves will shift with the market, while a monopoly's cost curves will remain stable
d. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices
c
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The major economic effect of Medicare subsidies is
A) that the number of physicians has decreased since compensation is low. B) to increase the price of medical services and reduce the quantity demanded. C) to increase the price of medical services and increase the quantity demanded. D) to lower the price of medical services and reduce the quantity demanded.
The relationship between the velocity of money and interest rates is:
A. negative and stable. B. negative but not stable. C. positive but not stable. D. positive and stable.