At the profit maximizing output, for the monopolist, options: price is greater than marginal cost, but for the perfectly competitive firm, price equals marginal cost. and the perfect competitor, price is greater than marginal cost. price is equal to marginal cost, but for the perfectly competitive firm, price is greater than marginal cost. and the monopolist, price equals marginal cost.
At the profit maximizing output, for the monopolist, options: price is greater than marginal cost, but for the perfectly competitive firm, price equals marginal cost. and the perfect competitor, price is greater than marginal cost. price is equal to marginal cost, but for the perfectly competitive firm, price is greater than marginal cost. and the monopolist, price equals marginal cost.
Chapter8: Monopoly
Section: Chapter Questions
Problem 4SQ
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Question
At the profit maximizing output, for the monopolist,
options:
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and the perfect competitor, price is greater than marginal cost.
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price is equal to marginal cost, but for the perfectly competitive firm, price is greater than marginal cost.
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and the monopolist, price equals marginal cost.
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