**Exam Question: Characteristics of Market Structures****Question:**Which of the following is true of both perfectly competitive AND monopoly markets?1. Firms have market power.2. Firms earn 0 economic profit in the long run.3. Marginal revenue is equal to price.4. Firms choose to produce a quantity at which marginal cost is equal to marginal revenue.5. There is no deadweight loss.**Instructions for Students:**- Carefully read each option before selecting your answer.- Consider the defining characteristics of perfectly competitive and monopoly markets.- Reflect on key concepts such as market power, economic profit, marginal revenue, marginal cost, and deadweight loss.

Perfect competitive market is a market that allows a large number of firms to participate in the…

Which of the following is true of both perfectly competitive AND monopoly markets? Firms have market power. Firms earn O economic profit in the long run. Marginal revenue is equal to price. Firms choose to produce a quantity at which marginal cost is equal to marginal revenue. There is no deadweight loss.

Which of the following is true of both perfectly competitive AND monopoly markets? Firms have market power. Firms earn O economic profit in the long run. Marginal revenue is equal to price. Firms choose to produce a quantity at which marginal cost is equal to marginal revenue. There is no deadweight loss.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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