Which of the following does a monopoly control that a perfectly competitive firm does not control?
A)Total production
B)Production technology
C)Price
D)Input usage
E)Plant size

Question

Which of the following does a monopoly control that a perfectly competitive firm does not control?​
A)Total production
B)Production technology
C)Price
D)Input usage
E)Plant size

Quizplus · Accepted Answer

A monopoly has the power to control the price of the product it sells, whereas a perfectly competitive firm cannot control the price since it must accept the market price as given. Monopolies may also have some control over production technology, input usage, and plant size, but these are not unique to monopolies as perfectly competitive firms can also make decisions regarding these factors. Additionally, a monopoly may not necessarily control total production since it may face production constraints or limitations.

Which of the Following Does a Monopoly Control That a Perfectly