Imperfect Competition

It is higher because the monopolist can exploit economies of scale more effectively.

It is lower because the monopolist sets a higher price to maximize profits.

It is the same since both types of firms aim to maximize profits by producing where marginal cost equals marginal revenue.

It cannot be determined without information on the market demand curves they face.

Costs may increase leading to decrease in supply (leftward shift).

Costs may decrease leading to decrease in quantity supplied at each price level.

Costs may decrease leading to increase in supply (rightward shift).

Quantity demanded might increase due to perceived higher quality from regulation compliance.

Going down from the profit-maximizing output to the average total cost curve.

Going up from the profit-maximizing output to the marginal cost curve.

Going up from the profit-maximizing output to the demand curve.

Going down from the profit-maximizing output to the demand curve.

Firms reduce advertising expenses voluntarily thus reallocating resources efficiently.

Government intervention will minimize deadweight loss spurring greater economic equity.

The firm could maintain artificially high prices reducing consumer welfare yet persist due lack of informed substitutes.

Over time, the amplification of all firms' ads will shift customer preference towards perfect competition.

Engaging in predatory pricing.

Offering differentiated products.

Encouraging new firms to enter the market.

Lowering prices to attract more customers.

Where marginal revenue equals marginal cost (MR = MC).

Where total revenue equals total cost (TR = TC).

Where average total cost equals marginal cost (ATC = MC).

Where demand equals marginal revenue (D = MR).

Price elasticity cannot be determined without knowing specific quantities sold at each price level.

The demand for their product is elastic which implies that quantity demanded does not change with price adjustments.

The demand for the monopolist's product is perfectly inelastic within that range of prices.

The demand for their product has unitary elasticity meaning total revenue remains constant regardless of price changes.

Higher prices and lower output.

Lower prices and higher consumer surplus.

Increased number of substitute goods in the market.

More efficient allocation of resources.

Where regulatory capture leads to government officials advocating for protectionism on behalf of the monopoly.

If technological advancements reduce barriers to entry, allowing for perfect competition within the industry.

When external pressures from global markets force domestic natural monopolies into more competitive pricing strategies.

When economies of scale are so extensive that average total costs continue to decline over relevant ranges of output satisfying market demand.

The profit that could have been earned from selling more goods.

The wages they pay their employees regardless of production levels.

Taxes paid on property where production takes place.

The interest on loans taken out when starting the business.