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

question 30

Multiple Choice

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

• A)marginal revenue equals marginal cost for perfectly competitive firms,but not for single-price monopolists.
• B)marginal cost equals average variable cost for perfectly competitive firms but not for single-price monopolists.
• C)price equals minimum average total cost for single-price monopolists but not for perfectly competitive firms.
• D)marginal revenue equals price for perfectly competitive firms,but not for single-price monopolists.
• E)marginal revenue equals marginal cost for single-price monopolists but not for perfectly competitive firms.

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Definitions:

Controlled Entities

These are entities over which another entity (the parent) has control, typically through ownership of more than half of the voting rights or through other mechanisms.

Associates

An entity over which an investor possesses significant influence, typically characterized by owning between 20% and 50% of the voting stock.

Joint Ventures

A partnership where multiple parties combine their assets to achieve a particular goal.

Entity

A legal or business entity that is capable of incurring liabilities and undertaking activities, often used to describe businesses, organizations, or corporations.