The significant difference between perfect competitors and imperfect competitors is
A) their goal of maximizing profit.
B) the structure of their costs.
C) the relationship of marginal cost to total cost.
D) the relationship of price to marginal revenue.
E) the relationship of marginal revenue to marginal cost.

Question

Quizplus · Accepted Answer

The significant difference between perfect competitors and imperfect competitors is the relationship of price to marginal revenue. In perfect competition, the price equals the marginal revenue, while in imperfect competition, the price is usually higher than the marginal revenue. This means that imperfect competitors have some market power to set prices above their marginal costs, unlike perfect competitors who have no market power.

The Significant Difference Between Perfect Competitors and Imperfect Competitors Is