Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in...

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Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the

business economics

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Answer 1

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Ans) the correct option is b) price and average total cost would be higher, but output would be lower

In monopoly, demand curve lies above the marginal revenue curve. In a competitive market, P = ATC in the long run

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Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in...