Which of the following statements about price and marginal cost in competitive and monopolised markets is true?
A) In competitive markets, price equals marginal cost; in monopolised markets, price exceeds marginal cost.
B) In competitive markets, price equals marginal cost; in monopolised markets, price equals marginal cost.
C) In competitive markets, price exceeds marginal cost; in monopolised markets, price exceeds marginal cost.
D) In competitive markets, price exceeds marginal cost; in monopolised markets, price equals marginal cost.
Correct Answer:
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