Answer Happy

If a competitive firm is in short-run equilibrium, then a. an increase in its fixed cost will have no effect on profit. O b. it will not operate at a loss. Oc. profits will always equal zero. d. an increase in its fixed cost will have no effect on output.

Is the monopolist supply decision fundamentally different than a competitive firm's supply decision? Yes, because only the monopolist can influence the price through its supply decision. Yes, because the monopolist's average cost is typically higher than the competitive firm's. O No, because total market demand determines the output level in both markets. O No, because firms set the price in both markets. O None of the above