Q
Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
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A
A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
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B
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
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C
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
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D
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost
Correct Answer:
A. A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
