The Main Difference Between the Price-Quantity Graph of a Perfectly

Multiple Choice

The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is

A) that the competitive firm's demand curve is horizontal,while that of the monopoly is downward sloping.
B) that a monopoly always earns an economic profit while a competitive company always earns only normal profit.
C) that a monopoly maximizes its profit when marginal revenue is greater than marginal cost.
D) that a monopoly does not incur increasing marginal cost.