3. Which is a FACT?

*Monopolies ultimately face competition.

*Monopolies have supply curves.

*Monopolies charge the highest possible price.

*Monopolies do not have to worry about demand.

4. If, in the short run, a perfectly competitive firm is producing at a point that total cost is greater than total revenue, then the firm should do what?

*continue to produce because accounting profits are positive

*shut down because economic profits are negative

*shut down because accounting profits are negative

*continue to produce as long as profits are greater than average variable costs