Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output?

question 7 options:

a) price> marginal cost.
b) marginal revenue= marginal cost.
c) profit = (ar-atc) x q.
d) price = average revenue.

a) Price> marginal cost.

Explanation:

A monopoly is when there is only one firm operating in an industry. A monopoly sets the market price for its products.

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Firms in a perfect competition are price takers, they accept the prices set by the forces of demand and supply.

In a monopoly, Price> marginal cost because the marginal revenue curve is always below the demand curve . This makes a monopoly to always earn economic profit.

In a perfect competition, price = marginal cost. A perfect competition doesn't earn economic profit in the long run.

I hope my answer helps you

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