Which of the following is true when a perfectly competitive firm is in short-run equilibrium but not when a non-discriminating monopolist is in equilibrium?
A)Price equals marginal cost.
B)Price is greater than marginal cost.
C)Marginal revenue equals marginal cost.
D)Marginal revenue is less than marginal cost.
E)Marginal revenue is greater than average revenue.

Question

Quizplus · Accepted Answer

In perfect competition, price equals marginal cost in short-run equilibrium. However, in a non-discriminating monopolist, price is always greater than marginal cost, even in equilibrium.

Which of the Following Is True When a Perfectly Competitive