Question

Which of the following statements about price and marginal cost in competitive and monopolized markets is true?
(a) In competitive markets, price equals marginal cost; in monopolized markets, price exceeds marginal cost.
(b) In competitive markets, price equals marginal cost; in monopolized markets, price equals marginal cost.
(c) In competitive markets, price exceeds marginal cost; in monopolized markets, price exceeds marginal cost.
(d) In competitive markets, price exceeds marginal cost; in monopolized markets, price equals marginal cost.

Answer 1

Answer:

The correct answer is  Option A .

Explanation:

Only option A is true, rest of the options are false.

a- In competitive markets, price equals marginal cost; in monopolized markets, price exceeds marginal cost.

This is one of the features of a competitive market that the price in this market is equal to the marginal cost because any profit maximizing producer will want that his P=MC. This indicates that a factors' price equals the factors ,marginal revenue product.

And in addition, at this point, price equals both the marginal cost and the average total cost for each good (P = MC = AC).

Answer 2

In competitive markets, price exceeds marginal cost; in monopolized markets, price exceeds marginal cost.

Explanation:

• In a perfect market, the price equals the marginal costs. The forms may not earn any economic profit. As in monopoly the prices are set is above marginal costs and thus form earn a positive economic profit.

• The perfect competition makes an equilibrium in forces and quality of goods. Monopolies produce a price equilibrium in which the process of the goods is higher. Thus governance seeks to regulate the market from the monopoly effects.

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• brainly.in/question/6263373 answered by alinakincsem.