Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition.
B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition.
C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition.
D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
C
You might also like to view...
An appreciation of a nation's currency is
A) a situation in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand. B) the increase in the exchange value of one nation's currency in terms of an other nation. C) a nation in which households, firms, and governments buy and sell national currencies. D) the decrease in the exchange value of one nation's currency in terms of another nation.
Since the 1930s, third-party payments for health care have
A) risen from about 5 to 90 percent of total payments. B) declined from about 95 to 10 percent of total payments. C) declined from about 70 to 30 percent of total payments. D) risen from about 30 to 50 percent of total payments.