Total surplus increases under monopoly when compared to perfect competition.

Comparative advantage can change over time

Indicate whether the statement is true or false

Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:

A. charge a lower price than the perfectly competitive firm. B. charge a higher price than the perfectly competitive firm. C. charge the same price as the perfectly competitive firm. D. refuse to operate in the short run unless an economic profit could be made.