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Management · Q96

Managerial Economics

Graduate and Post Graduate · Management · question 96

Q96

The difference between monopoly equilibrium and competitive equilibrium is

A.
The MC should rise at the point of equilibrium under perfect competition whereas under monopoly it can rise, fall or remain constant
Answer
B.
Under perfect competition, the MC = MR whereas under monopolistic conditions this need not be the case
C.
There is no difference at all
D.
None of the above

Answer: Option A

Solution

Answer: Option A
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