The broccoli market is perfectly competitive.This means that the price of broccoli is than the price would be if the market were monopolistically competitive, and broccoli output is than if it were monopolistically competitive.
A)lower; greater
B)lower; less
C)greater; less
D)greater; greater

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are many buyers and sellers, which means that no single buyer or seller can influence the market price. As a result, the price of broccoli is lower than it would be in a monopolistically competitive market, where individual firms have some market power and can charge higher prices. Additionally, in a perfectly competitive market, firms are producing at their efficient scale, which leads to greater output than if they were producing at a smaller scale as would be the case in a monopolistically competitive market.

The Broccoli Market Is Perfectly Competitive