Which of the following statements is correct for both a monopolist and a perfectly competitive firm?

Question

Quizplus · Accepted Answer

Statement (i) is correct for both a monopolist and a perfectly competitive firm, as both firms maximize profits by producing where marginal revenue equals marginal cost. 
Statement (iv) is also correct for both, as both firms face a downward-sloping demand curve and can sell more output only by reducing their price. 
Statement (ii) is not correct for a monopolist, as monopolists restrict output to increase prices and profits. 
Statement (iii) is not correct for a perfectly competitive firm, as in perfect competition, all firms are price takers and cannot influence the market price.

Which of the Following Statements Is Correct for Both a Monopolist