Which of the following is not a difference between monopolies and perfectly comp

Question

Which of the following is not a difference between monopolies and perfectly competitive markets? Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost. Monopolies can earn profits in the long run while perfectly competitive firms break even. Monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not. Monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.

Explanation / Answer

Option C. The profit maximizing condition for both perfect competition and monopoly is MR = MC. since in perfect competition Price = MR so, we write it as P = MC = MR in perfect competition.

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