Which of the Following Statements About Monopoly Equilibrium and Perfectly

question 104

Multiple Choice

Which of the following statements 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 is less than if the market were perfectly competitive.
• C) Monopoly output will be less than 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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