Which of the following does a monopoly control, that a perfectly competitive firm does not control?
A)how much to produce
B)technology
C)what price to charge
D)what inputs to use
E)plant size

Question

Quizplus · Accepted Answer

A monopoly is the sole seller in the market, so it can control the price of its product or service. In contrast, a perfectly competitive firm has no market power to influence the price and must accept the prevailing market price. Monopolies can also use their pricing power to earn profits that are higher than a competitive firm's profits. The other choices (A, B, D, and E) are all decisions that a competitive firm can make, as they are not related to market power.

Which of the Following Does a Monopoly Control, That a Perfectly