-Refer to the above figure. Which of the following statements is true?
A) Under perfect competition, the efficient price is charged, which is the lowest price possible ( ) while under monopoly output is too large ( ) and price is too high ( ).
B) Under perfect competition price equals marginal cost ( ) while under monopoly price ( ) is greater than marginal cost ( ).
C) The rate of output is the same under both monopoly and perfect competition ( ), but price is higher under monopoly ( rather than ).
D) Price equals marginal cost under both monopoly and perfect competition, but output is too low under monopoly ( instead of ).

Question

-Refer to the above figure. Which of the following statements is true?
A) Under perfect competition, the efficient price is charged, which is the lowest price possible ( ) while under monopoly output is too large ( ) and price is too high ( ). 
B) Under perfect competition price equals marginal cost ( ) while under monopoly price ( ) is greater than marginal cost ( ). 
C) The rate of output is the same under both monopoly and perfect competition ( ), but price is higher under monopoly ( rather than ). 
D) Price equals marginal cost under both monopoly and perfect competition, but output is too low under monopoly ( instead of ).

Quizplus · Accepted Answer

The Answer of 
-Refer to the above figure. Which of the following statements is true?
A) Under perfect competition, the efficient price is charged, which is the lowest price possible ( ) while under monopoly output is too large ( ) and price is too high ( ). 
B) Under perfect competition price equals marginal cost ( ) while under monopoly price ( ) is greater than marginal cost ( ). 
C) The rate of output is the same under both monopoly and perfect competition ( ), but price is higher under monopoly ( rather than ). 
D) Price equals marginal cost under both monopoly and perfect competition, but output is too low under monopoly ( instead of ).

-Refer to the Above Figure