Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly?
A)Each must lower its price to sell more output.
B)Each sets a price for its product that will maximize its revenue.
C)Each maximizes profits by producing a quantity for which marginal revenue equals marginal cost.
D)Each maximizes profits by producing a quantity for which price equals marginal cost.

Question

Quizplus · Accepted Answer

Both a perfectly competitive firm and a monopoly maximize profits by producing a quantity where marginal revenue equals marginal cost.

Which of the Following Is a Characteristic Shared by a Perfectly