Question 8 Not yet answered Points out of r Remove fiag (This question refers to

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Question 8 Not yet answered Points out of r Remove fiag (This question refers to the MRU video Maximizing Profit under Monopoly ) Which of the following describes the main difference in the market outcome for a monopolist versus a competitive firm? Select one Oa. For a competitive firm, P > MC, but for a monopolist, P-MC b. For a competitive firm, P < MC, but for a monopolist, P &g;, MC. c. For a compettive firm, p-MC, but for a monopolist, P < MC O d. For a competitive firm, P-MC, but for a monopolist, P> MC. Question 9 Not yet answered Points out of 1 r Remove flag Figure: Profit Maximization 6 Price 15 10 10 20 30 40 50 60 70 80 90 100 Quantity At any price above $60 in this diagram. firms already in this market will be making an economic: Select one ?Il a, loss (P Aq, causing other firms to enter tne industry in tne long run. protPH A causing other firms to enter the industry in the short ru d loss (P K 4C end will exit the industry n the lons run

Explanation / Answer

- d is correct

In perfect competition P= MC and in monopoly P>MC

- b is correct

Existing firms are earning profit as P>AC, causing other firms to enter the industry in long run.

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