An Important Difference Between a Perfectly Competitive Firm and a Monopolist

question 231

Multiple Choice

An important difference between a perfectly competitive firm and a monopolist is that

• A)the perfectly competitive firm tends to be larger
• B)only the monopolist attempts to maximize profit
• C)only the perfectly competitive firm maximizes profit
• D)the perfectly competitive firm faces a horizontal demand curve and the monopolist faces a downward-sloping demand curve
• E)only the monopolist maximizes profit at the quantity where marginal cost equals marginal revenue