Multiple Choice
Which of these is a key difference between a perfectly competitive firm and a monopolist that does not practice price discrimination?
A) The marginal cost curve is U-shaped for a perfectly competitive firm but not for a monopolist.
B) Price is equal to average revenue for a perfectly competitive firm in equilibrium but not for a monopolist.
C) Price is equal to marginal revenue for a perfectly competitive firm in equilibrium but not for a monopolist.
D) The average revenue curve is the demand curve for a perfectly competitive firm but not for a monopolist.
E) A monopolist aims to maximize profits, while a perfectly competitive firm tries to maximize total revenue.
Correct Answer:
Verified
Correct Answer:
Verified
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