One Difference Between Perfectly Competitive Markets and Single-Price Monopoly Markets

question 435

Multiple Choice

One difference between perfectly competitive markets and single-price monopoly markets is that

• A) marginal revenue equals marginal cost for perfectly competitive firms, but not for monopolists.
• B) marginal revenue equals price for perfectly competitive firms, but not for single-price monopolists.
• C) marginal cost equals average variable cost for perfectly competitive firms but not for monopolists.
• D) All the above answers are correct.

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Definitions:

Mutually Exclusive

Conditions or events that cannot occur simultaneously or be true at the same time.

Elastic Clause

A provision in the U.S. Constitution that grants Congress the power to pass all laws necessary and proper for carrying out its enumerated powers, also known as the Necessary and Proper Clause.

Article I

This is the first section of the U.S. Constitution, which establishes the legislative branch of the federal government, the Congress.

Enumerated Powers

Specific powers granted to Congress as outlined in the United States Constitution.