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

Question

Quizplus · Accepted Answer

The key difference between a competitive firm and a monopoly firm is that a competitive firm has no control over the price of its output, while a monopoly firm has the ability to set the price of its output due to its market power, resulting in higher profits for the monopolist. A monopoly firm, therefore, has the ability to select the price of its output whereas a competitive firm does not.

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