Assuming the same cost structure, a competitive market produces ________ output at ________ prices than a monopoly market.

Question

Quizplus · Accepted Answer

In a competitive market, there are many firms competing with each other, which drives the price down as each firm tries to undercut the others. This results in more output being produced at lower prices. In a monopoly market, there is only one firm, and they have the power to charge higher prices due to their lack of competition. Therefore, a competitive market produces more output at lower prices than a monopoly market with the same cost structure.

Assuming the Same Cost Structure, a Competitive Market Produces ________