The statement that is true for a perfectly competitive firm but not true for a monopoly is the firm cannot affect the market price for its good. (option b)
A perfect competition is when there are numerous buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into a perfectly competitive firm. The demand for the firm's product is perfectly elastic.
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. The demand curve is downward sloping. it sets the price for its goods and services. An example of a monopoly is a utility company
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Option E. The answer that is true for the perfectly competitive firm but NOT true for a monopoly is The firm must lower its price in order to sell more of its product.
A scenario known as monopoly occurs when there is only one seller in the market. The monopoly case is viewed as the polar opposite of perfect competition in conventional economic analysis. The industry's downward-sloping demand curve is, by definition, the demand curve that the monopolist faces.
a market arrangement in which there is just one seller and only one type of goods available. As the only vendor of the goods with no viable alternatives, the seller in a monopoly market has no rivals.
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