The key difference between a competitive firm and a monopoly firm is the ability to select
A)the level of competition in the market.
B)the level of production.
C)inputs in the production process.
D)the price of its output.

Question

Quizplus · Accepted Answer

A competitive firm is a price taker, meaning it must accept the market price for its output, while a monopoly firm has the power to set the price of its output. Therefore, the key difference between the two is the ability to select the price of its output, which is answer D.

The Key Difference Between a Competitive Firm and a Monopoly