When comparing a monopoly firm and a competitive firm in the long run,which of the following statements is not correct?
A)A monopoly firm does not need to produce output at the lowest possible cost but a competitive firm must.
B)A monopoly firm earns economic profit at its profit-maximizing level of output but a competitive firm does not.
C)A monopoly firm operates at the minimum point on its average cost curve but a competitive firm does not.
D)A monopoly firm will produce more than the efficient level of output but a competitive firm will always produce the efficient level of output.

Question

Quizplus · Accepted Answer

In the long run, a competitive firm operates at the minimum point on its average cost curve, achieving productive efficiency, while a monopoly does not necessarily operate at this point.

When Comparing a Monopoly Firm and a Competitive Firm in the Long