One difference between perfectly competitive markets and single-price monopoly markets is that
A) marginal revenue equals marginal cost for perfectly competitive firms, but not for monopolists.
B) marginal revenue equals price for perfectly competitive firms, but not for single-price monopolists.
C) marginal cost equals average variable cost for perfectly competitive firms but not for monopolists.
D) All the above answers are correct.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, marginal revenue equals price because firms are price takers. In contrast, a single-price monopolist's marginal revenue is less than the price due to the downward-sloping demand curve.

One Difference Between Perfectly Competitive Markets and Single-Price Monopoly Markets