To maximize profit, both monopoly and perfect competition produce where marginal revenue equals marginal cost.

True

False

What is a distinctive feature of monopoly?

the firm charges a price equal to marginal cost

the firm achieves zero economic profits in the long run

the firm faces competition by other firms

the firm can prevent entry into the industry

The long-run supply curve of a perfectly competitive firm is its marginal cost curve above the average variable cost.

True

False

The monopoly firm charges a price above its marginal cost.

True

False

To achieve a positive profit the monopolistic firm must have

marginal cost above the demand curve

average cost intersecting the demand curve

marginal cost intersecting the demand curve

average cost above the demand curve

The perfectly competitive firm in a long-run equilibrium achieves zero economic profit.

True

False