When comparing a perfectly competitive firm and a (single- price)monopolist,a major difference is that
A)the monopolist produces where MR = MC,but the perfect competitor does not.
B)the perfect competitor produces where P = MC,but the monopolist does not.
C)the perfect competitor minimizes its costs,but the monopolist does not.
D)the monopolist achieves allocative efficiency but the perfect competitor does not.
E)the perfect competitor achieves productive efficiency,but the monopolist does not.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce where P = MC to maximize profit, whereas a monopolist produces where MR = MC to maximize profit. This means that the monopolist will price higher and produce less output than a perfectly competitive firm. Therefore, choice B is the correct answer.

When Comparing a Perfectly Competitive Firm and a (Single- Price)monopolist,a