28. Which of the following statements accurately describes the difference between a firm that is a monopolist and firms operating in competitive markets? (More than one answer is correct.)

a. A monopolist can earn economic profit in the short run; a competitive price taker cannot.

b. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist.

c. A monopolist will charge a price that is greater than its marginal cost, but competitive price searchers will charge prices that just equal to their marginal cost.

d. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit costs.

e. Monopolists will face a downward-sloping demand curve; competitive price-takers will not.

29. If the price of sandals is fixed by law below the market-clearing price (Note: More than one answer is correct):

a. the quantity of sandals demanded will be greater than the quantity supplied.

b. the quantity of sandals demanded will be greater than the quantity demanded at the market price.

c. sandal inventories at shoe stores will be smaller than when the market price prevails.

d. the quantity of sandals purchased will be less than the quantity purchased at the market price.

e. the quantity of sandals supplied will be greater than the quantity demanded and purchased.