The monopolist and the perfect competitor are similar in that
A)both operate at the minimum of the ATC curve.
B)both have close substitutes.
C)both types of markets have no barriers to entry.
D)both produce at an output level where MC = MR.

Question

Quizplus · Accepted Answer

Both the monopolist and the perfect competitor maximize profit by producing at an output level where MC=MR. This is because in both cases, the marginal revenue of selling one more unit is equal to the marginal cost of producing it.

The Monopolist and the Perfect Competitor Are Similar in That