Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly?
A)Each must lower its price to sell more output.
B)Each sets a price for its product that will maximise its revenue.
C)Each maximises profits by producing a quantity for which marginal revenue equals marginal cost.
D)Each maximises profits by producing a quantity for which price equals marginal cost.

Question

Quizplus · Accepted Answer

Both perfectly competitive firms and monopolies maximize profits by producing at a quantity where marginal revenue equals marginal cost. This is a fundamental principle of profit maximization in economics, applicable across different market structures.

Which of the Following Is a Characteristic Shared by a Perfectly