Figure 11-9
-What is true for monopoly that is not true for perfect competition?
A)The industry demand curve is downward sloping.
B)Profit is maximized where MR = MC.
C)The firm and the industry are exactly the same entity.
D)Positive economic profits may be earned in the short run.

Question

Figure 11-9 
-What is true for monopoly that is not true for perfect competition?
A)The industry demand curve is downward sloping. 
B)Profit is maximized where MR = MC. 
C)The firm and the industry are exactly the same entity. 
D)Positive economic profits may be earned in the short run.

Quizplus · Accepted Answer

In a monopoly, the firm is the sole provider of the good or service, making the firm and the industry the same entity. In perfect competition, many firms exist, so the firm and industry are not the same.

Figure 11-9 -What Is True for Monopoly That Is Not True for Not