Which of the following statements is FALSE?
A) A perfectly competitive market produces more output and charges a lower price than a monopoly.
B) A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC.
C) In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost.
D) The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market.
E) In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm.
B
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The earnings of a Spanish factory with British owners are
A) counted in Spain's GDP. B) part of Britain's GNP. C) only counted in Britain's GDP. D) only part of Spain's GNP. E) counted in Britain's GDP and are a part of Spain's GNP.
Refer to above figure. Given a tariff of $3 per unit, what is the country's consumer surplus?
What will be an ideal response?