Compared to a single- price monopoly, the price charged by a competitive market with the same costs
A) could be higher than, lower than, or the same as the monopoly's price.
B) is higher than the monopoly's price.
C) is the same as the monopoly's price.
D) is lower than the monopoly's price.

Question

Quizplus · Accepted Answer

In a competitive market, firms typically charge a price that is equal to marginal cost, which tends to be lower than the price charged by a monopoly. A monopoly, having no competition, can set prices higher to maximize profits, leading to a price that is generally higher than in a competitive market.

Compared to a Single- Price Monopoly, the Price Charged by a Competitive