1404EconomicsMedium
Which of the following statements about price and marginal cost in competitive and monopolized markets is true?
AIn competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
BIn competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost
CIn competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
DIn competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
Correct answer
D. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
Explanation
The correct answer is In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost..