Which of the following statements is FALSE? Answer In a perfectly competitive ma

Question

Which of the following statements is FALSE? Answer In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost. In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm. The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market. A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC. A perfectly competitive market produces more output and charges a lower price than a monopoly.

Explanation / Answer

A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC.

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