It is possible for a monopolist to be more eﬃcient than a perfectly competitive ﬁrm if _____.
A) the monopolist charges a higher price for its output than does the competitive ﬁrm
B) the monopolist's marginal cost curve lies below that of the competitive ﬁrm
C) the monopolist offers a lower level of output for sale than does the competitive ﬁrm
D) the monopolist practices price discrimination

Question

Quizplus · Accepted Answer

A monopolist can be more efficient if its marginal cost curve is lower than that of a competitive firm, as it can produce at a lower cost.

It Is Possible for a Monopolist to Be More Eﬃcient