Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is in a competitive, open price-taker market?
A) Marginal revenue and price are equal for a price taker but not a monopolist.
B) Monopolists can earn economic profits in the long run, but price takers cannot.
C) A price taker sells its output at a price equal to marginal cost, while a monopolist sells its output at a price higher than marginal cost.
D) All of the above are true.
Correct Answer:
Verified
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