Which of the following is similar for both a competitive industry and a monopoly?
A) The level of economic profits in the long run.
B) Continuous pressure to improve product quality.
C) Profits signal consumers' demand for more output.
D) In the long run,average total costs are minimized.

Question

Quizplus · Accepted Answer

Profits in both competitive industries and monopolies signal to the firms that consumers demand more output. In competitive markets, profits attract new firms, while in monopolies, they indicate the potential for increased production or price adjustments.

Which of the Following Is Similar for Both a Competitive