Comparing the monopoly firm with a perfectly competitive firm reveals
That:
A)the competitive firm sells less quantity.
B)the monopoly firm charges a lower price.
C)the competitive firm's price is above MC.
D)None of these is revealed when the two firm are compared.

Question

Quizplus · Accepted Answer

In comparison, a monopoly firm typically sells a lower quantity at a higher price than a perfectly competitive firm. In perfect competition, firms sell at a price equal to marginal cost (MC), whereas a monopoly sets a price above MC.

Comparing the Monopoly Firm with a Perfectly Competitive Firm Reveals