Nondiscriminating monopoly is similar to perfect competition in that
A)they have the same level of barriers to entry
B)they have a similar number of firms in the industry
C)the demand curve facing the firm is perfectly elastic for both
D)price equals marginal revenue for both
E)price equals average revenue for both

Question

Quizplus · Accepted Answer

In both nondiscriminating monopoly and perfect competition, price equals average revenue. This is because average revenue is defined as total revenue divided by quantity, which is the same as the price in both market structures.

Nondiscriminating Monopoly Is Similar to Perfect Competition in That