In perfect competition, price is equal to marginal revenue, while in monopoly, price is greater than marginal revenue.

Question

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In perfect competition, firms are price takers, so the price set by the market is equal to the marginal revenue for each additional unit sold. In a monopoly, the firm has market power and can set prices above marginal cost, leading to a situation where price is greater than marginal revenue because the firm must lower the price on all units sold to sell an additional unit, thus reducing marginal revenue.

In Perfect Competition, Price Is Equal to Marginal Revenue, While