Which of the following is not a difference between monopolies and perfectly competitive markets?
A)Monopolies can earn profits in the long run while perfectly competitive firms break even.
B)Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost.
C)Monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not.
D)Monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.

Question

Quizplus · Accepted Answer

Both monopolies and perfectly competitive firms choose to produce the quantity at which marginal revenue equals marginal cost. The difference lies in the nature of marginal revenue and demand curves they face.

Which of the Following Is Not a Difference Between Monopolies