A significant difference between a competitive firm and a monopoly firm is the ability to select:
A)the price of its output
B)the level of competition in the market
C)the level of production
D)the wages of its workers

Question

Quizplus · Accepted Answer

A competitive firm does not have the ability to select the price of its output since it must accept the prevailing market price. In contrast, a monopoly firm has the power to set the price of its output since it is the sole producer in the market.

A Significant Difference Between a Competitive Firm and a Monopoly