What is the main difference between a competitive firm and a monopoly
A)A competitive firm owns a key resource, but a monopoly firm does not.
B)A competitive firm is a price taker, and a monopoly is a price maker.
C)A competitive firm produces output at a lower cost than a monopoly firm.
D)A competitive is subject to government regulations, but a monopoly firm is not.

Question

Quizplus · Accepted Answer

The main difference between a competitive firm and a monopoly is that a competitive firm is a price taker, meaning it has no control over the market price and must accept the market price to sell its product. On the other hand, a monopoly is a price maker, meaning it has the power to set the price for its product as there are no close substitutes. The other choices are not necessarily true or relevant to the main difference between the two types of firms.

What Is the Main Difference Between a Competitive Firm and a Monopoly