Assume that a pure monopolist and a purely competitive firm have the same unit c

Question

Assume that a pure monopolist and a purely competitive firm have the same unit costs. In this case, determine what is true with respect to (a) price, (b) output, and (c) profits.

1. PMonopoly > PCompetition 2. PMonopoly < PCompetition 3. PMonopoly = PCompetition 4. QMonopoly > QCompetition 5. QMonopoly < QCompetition 6. QMonopoly = QCompetition 7. ProfitMonopoly > ProfitCompetition 8. ProfitMonopoly < ProfitCompetition 9. ProfitMonopoly = ProfitCompetition

Which of the combinations above are accurate?

3, 6, and 9 2, 6, and 8 1, 5, and 7 2, 4, and 8 1. PMonopoly > PCompetition 2. PMonopoly < PCompetition 3. PMonopoly = PCompetition 4. QMonopoly > QCompetition 5. QMonopoly < QCompetition 6. QMonopoly = QCompetition 7. ProfitMonopoly > ProfitCompetition 8. ProfitMonopoly < ProfitCompetition 9. ProfitMonopoly = ProfitCompetition

Explanation / Answer

2, 4, and 8

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