When comparing a single-price monopoly to a perfectly competitive market with the same costs
A) both the monopoly's output and price are lower than the perfectly competitive market's output and price.
B) both the monopoly's output and price are higher than the perfectly competitive market's output and price.
C) the monopoly's output is higher and the monopoly's price is lower than the perfectly competitive market's output and price.
D) the monopoly's output is smaller and the monopoly's price is higher than the perfectly competitive market's output and price.

Question

Quizplus · Accepted Answer

A single-price monopoly produces less output and charges a higher price compared to a perfectly competitive market, which produces at the point where price equals marginal cost.

When Comparing a Single-Price Monopoly to a Perfectly Competitive Market