Question

QUESTION 15 A key difference between perfect competition and monopoly is that: OPC forms are price-takers with no market power, monopoly firms are price-makers with maximum market power OPC forms are price-takers with maximum market power, monopoly firms are price-makers with no market power OPC firms are price-makers with no market power, monopoly firms are price-takers with maximum market power OPC firms are price makers with maximum market power, monopoly firms are price-takers with no market power QUESTION 16 Steve's Wheat Farm sells wheat to a grain broker in Seattle, Washington. Since the market for wheat is generally considered to be competitive, the Wheat Farm maximizes its profit by choosing to produce the quantity at which average variable cost is minimized. to produce the quantity at which average fixed cost is minimized. to sell its wheat at a price where marginal cost is equal to average total cost the quantity at which market price is equal to the farm's marginal cost of production

Answer 1

15.

Perfect competition market were product is homogeneous in nature

There are large number of buyers and sellers in the market .

They are price takers because price is decided by the market forces that is demand and supply so they have least market power

Opposite to it is Monopoly where there is only single seller and large number of buyers in the market

Price is decided by the Monopoly so they have the maximum market power

Answer is option A

16.

For competitive market, the firm maximize the profit where Market price is equal to the marginal cost of the production

In case of monopoly ,it is where marginal cost and marginal revenue intersect

So the correct answer here is option d