How Do a Monopolist and a Perfectly Competitive Firm Differ

question 62

Multiple Choice

How do a monopolist and a perfectly competitive firm differ?

• A) The industry demand curve slopes downward for a monopolist, but not for a perfectly competitive industry.
• B) Price exceeds marginal cost for the monopolist.
• C) The monopoly price equals marginal revenue, but not average revenue.
• D) Monopoly profits are maximized by choosing output where marginal revenue equals marginal cost.

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Definitions:

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