Compared to a single-price monopoly, the price charged by a perfectly competitive market with the same costs
A) is higher than the monopoly's price.
B) is the same as the monopoly's price.
C) is lower than the monopoly's price.
D) could be higher than, lower than, or the same as the monopoly's price.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and will charge a price equal to marginal cost, which is lower than the price a monopoly would charge, as monopolies set prices above marginal cost to maximize profits.

Compared to a Single-Price Monopoly, the Price Charged by a Perfectly