Under both monopoly and perfect competition,a firm

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Under both monopoly and perfect competition, firms operate where marginal revenue equals marginal cost to maximize profits. This is a fundamental principle of microeconomics. In perfect competition, firms are price takers and cannot influence the market price, while a monopoly can set its price (price maker) but still follows the MR=MC rule for profit maximization. Long-run economic profits are typically zero in perfect competition due to free entry and exit, while monopolies can earn economic profits in the long run due to barriers to entry.

Under Both Monopoly and Perfect Competition,a Firm