One thing a monopoly firm has to do that a perfectly competitive firm does not have to do is
A)search for its profit-maximizing price.
B)advertise.
C)minimize its losses.
D)produce the quantity of output at which P = MC.
E)produce a high-quality product.

Question

Quizplus · Accepted Answer

In a monopoly, the firm has market power and can set its own price, so it must search for the profit-maximizing price. In perfect competition, firms are price takers and simply accept the market price.

One Thing a Monopoly Firm Has to Do That a Perfectly