Which of the following statements is TRUE?
A) A perfectly competitive market produces more output and charges a lower price than a single-price monopoly.
B) A perfectly competitive market produces more output and charges the same price as a single-price monopoly.
C) A perfectly competitive market produces less output and charges a lower price than a single-price monopoly.
D) A perfectly competitive market produces less output and charges the same price as a single-price monopoly.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce at the point where price equals marginal cost, leading to more output and lower prices compared to a single-price monopoly, which restricts output to maximize profits, resulting in higher prices.

Which of the Following Statements Is TRUE