An important distinction between perfect competition and monopoly is that in
A) perfect competition, there is no distinction between the firm and the industry.
B) perfect competition, the firm is the industry.
C) monopoly, the firm faces the market demand curve.
D) monopoly, the firm produces less than the total quantity supplied.

Question

Quizplus · Accepted Answer

In a monopoly, the firm is the sole provider of a good or service, meaning it faces the market demand curve directly. This contrasts with perfect competition, where individual firms face a perfectly elastic demand curve due to the presence of many competitors.

An Important Distinction Between Perfect Competition and Monopoly Is That