Which Statement About Monopoly Equilibrium and Perfectly Competitive Equilibrium Is

question 42

Multiple Choice

Which statement about monopoly equilibrium and perfectly competitive equilibrium is INCORRECT?

• A)Price is greater than marginal cost in monopoly,and price equals marginal cost in perfect competition.
• B)When a monopoly exists,the consumer surplus from the market is less than it would be if the same market were perfectly competitive.
• C)Monopoly output will be less than will the output of a comparable perfectly competitive industry.
• D)In the long run,economic profits are driven to zero in both a monopoly and a perfectly competitive market.

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