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Home / Questions / uppose a monopolist and a perfectly competitive firm both have the same cost curves.

uppose a monopolist and a perfectly competitive firm both have the same cost curves.

uppose a monopolist and a perfectly competitive firm both have the same cost curves.
                            The monopolist would

a.charge a lower price than the perfectly competitive firm

b.charge a higher price than the perfectly competitive firm

c.charge the same price as the perfectly competitive firm

d.refuse to operate in the short run unless an economic profit could be made, unlike the
perfectly competitive firm

e.refuse to operate in the short run if an economic loss was present, unlike the
perfectly competitive firm

52.              Suppose potatoes were produced in Canada by many, many firms in perfect competition.
                            In Belgium, only one firm produces potatoes for the Belgium market. Suppose as well
                            that for the competitive firms and the monopoly, minimum ATC is the same. We would
                            expect then, that in Belgium the price of potatoes is _____________  and ____________
                            potatoes are produced and sold than in Canada.

a.higher; more

b.lower; more

c.higher; fewer

d.lower; fewer

e.the same; fewer

53.              Many firms have implicit and explicit costs. The difference between them is that implicit
                            costs

a.are taken into consideration for tax purposes while explicit costs are not

b.are the same as explicit costs but are internalized within the firm, such as hiring labor

c.are part of accounting costs while explicit costs are not

d.represent actual money payments to factors of production while explicit costs do not

e.although not involving money payments are the opportunity costs of resources used
by the firm

Dec 12 2019 View more View Less

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