 
                 
                InterviewSolution
 Saved Bookmarks
    				| 1. | Pricing of product in monopoly and perfect competition | 
| Answer» Answer: In a perfectly competitive market, price equals marginal cost and firms EARN an economic profit of zero. In a monopoly, the price is SET above marginal cost and the firm earns a positive economic profit. PERFECT competition produces an EQUILIBRIUM in which the price and quantity of a good is economically efficient | |