Q117
In monopoly and perfect competition, the cost curves are
A.
Same
AnswerB.
Different
C.
Opposite
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
In monopoly and perfect competition, the cost curves are same. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. Perfect competition produces an equilibrium in which the price and quantity of a good is economically efficient.