Which statement about monopoly equilibrium and perfectly competitive equilibrium is INCORRECT?
A)Price is greater than marginal cost in monopoly,and price equals marginal cost in perfect competition.
B)When a monopoly exists,the consumer surplus from the market is less than it would be if the same market were perfectly competitive.
C)Monopoly output will be less than will the output of a comparable perfectly competitive industry.
D)In the long run,economic profits are driven to zero in both a monopoly and a perfectly competitive market.

Question

Quizplus · Accepted Answer

In the long run, economic profits are driven to zero in a perfectly competitive market, but not necessarily in a monopoly market. Monopoly markets can sustain long-run economic profits due to the lack of competition.

Which Statement About Monopoly Equilibrium and Perfectly Competitive Equilibrium Is