Which of the following statements is true regarding the difference between a monopolist and a perfectly competitive firm?

Question

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A monopolist can set its price based on its market power, while a perfectly competitive firm must accept the market price as a price taker. Choices A and B are incorrect because in a perfectly competitive market, the price and supply are determined by the intersection of the demand and supply curves, resulting in a lower price and higher supply than in a monopoly. Choice D is incorrect because a market with perfect competition has no deadweight loss, while a market with a monopoly has a higher deadweight loss due to the higher price charged by the monopolist.

Which of the Following Statements Is True Regarding the Difference