Q266
The AR curve and industry demand curve are same in case of
A.
Monopoly
AnswerB.
Oligopoly
C.
Perfect competition
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
The AR curve and industry demand curve are same in case of Monopoly. 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.