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:

Collection Delay

The time lag between when a payment is made by a buyer and when the funds become available to the seller.

Average Daily Float

Indicates the average amount of un-cleared checks or unprocessed transactions in a company's bank account over a certain period, impacting the available balance.

Cheques

A method of payment that allows an individual to instruct their bank to pay a specific amount from their account to another party.

Daily Interest Rate

This is the interest rate applied to a loan or investment for a single day, often used in calculating accrued interest over a period.