Compared to a single-price monopoly, a perfectly competitive market with the same costs produces ________ output and has a ________ price.
A) less; lower
B) less; higher
C) more; lower
D) more; higher

Question

Quizplus · Accepted Answer

A perfectly competitive market produces more output and has a lower price compared to a single-price monopoly because competition drives prices down and increases output to the level where price equals marginal cost.

Compared to a Single-Price Monopoly, a Perfectly Competitive Market with the Same