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

Question

Quizplus · Accepted Answer

In a perfectly competitive market, prices tend to be lower and output higher compared to a monopolistically competitive market, where firms have some price-setting power and produce less output.

The Broccoli Market Is Perfectly Competitive