Answer and Explanation: The answer to this question is (a) A monopoly charges a higher price and produces a lower output level than if the market were competitive.
The correct option is: E. The firm may earn positive, negative, or normal profits. In the short run, a firm operating in a perfectly competitive...
Which of the following is true when comparing monopolistic competition and perfect competition? monopolistic competitive markets charge higher prices and produce less output compared to perfectly competitive markets.
A monopoly causes a reduction in economic efficiency.
There are three main characteristics in a perfectly competitive market: 1) many buyers and sellers, 2) Consumers believe that all firms in perfectly competitive markets sell identical (or homogeneous) products. 3) It's very easy to enter and exit the specific market.
Firms are said to be in perfect competition when the following conditions occur: (1) many firms produce identical products; (2) many buyers are available to buy the product, and many sellers are available to sell the product; (3) sellers and buyers have all relevant information to make rational decisions about the ...
Perfectly Competitive Market. Has: -Many buyers and sellers in the market. -Goods offered by the various sellers that are largely the same, this means buyers and sellers must accept the price determined by the market. -Firms that can freely enter or exit the market.
Which is necessarily true for a perfectly competitive firm in short-run equilibrium? Marginal revenue minus marginal cost equals zero.