The Main Difference Between the Price-Quantity Graph of a Perfectly

question 32

Multiple Choice

The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is

• A)that the competitive firm's demand curve is horizontal,while that of the monopoly is downward sloping.
• B)that a monopoly always earns an economic profit while a competitive company always earns only normal profit.
• C)that a monopoly maximizes its profit when marginal revenue is greater than marginal cost.
• D)that a monopoly does not incur increasing marginal cost.

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