
-Refer to the above figure.Which of the following statements is true?
A) Under perfect competition,the efficient price is charged,which is the lowest price possible ( ) while under monopoly output is too large (
) and price is too high (
) .
B) Under perfect competition price equals marginal cost ( ) while under monopoly price (
) is greater than marginal cost (
) .
C) The rate of output is the same under both monopoly and perfect competition ( ) ,but price is higher under monopoly (
rather than
) .
D) Price equals marginal cost under both monopoly and perfect competition,but output is too low under monopoly ( instead of
) .
Correct Answer:
Verified
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