The Difference Between a Monopolist and a Monopolistic Competitor Is

question 182

Multiple Choice

The difference between a monopolist and a monopolistic competitor is that:

• A) a monopolist equates marginal revenue and marginal cost whereas a monopolistic competitor equates price and marginal cost.
• B) the average total cost curve of a monopolistic competitor is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolist can be in a position below the price in long-run equilibrium.
• C) the average total cost curve of a monopolist is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolistic competitor can be in a position below the price in long-run equilibrium.
• D) the average total cost curve of a monopolist is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolistic competitor can be in a position above the price in long-run equilibrium.

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Definitions:

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