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Nataly [62]
3 years ago
12

n monopolistic​ competition, each​ firm's markup​ ______ that in perfect​ competition, and the price is​ ______ than in perfect

competition. A. is the same​ as; higher B. ​exceeds; higher C. is the same​ as; same as D. ​exceeds; same as The total quantity produced by the firms in monopolistic competition is​ _______ the total quantity produced by firms in perfect competition. A. greater than B. less than C. equal to
Business
1 answer:
CaHeK987 [17]3 years ago
8 0

Answer:

The correct answer is option B.

The correct answer is option B.

Explanation:

In a monopolistic market, the markup of each firm is higher than that of a firm in perfect competition. Price is higher as well. The firm in perfect competition is a price taker. The price is determined by the market forces. While, on the other hand, in a monopolistic market the firm is price maker. The price is determined by the interaction of marginal revenue and marginal cost.  

Perfect competition has both productive as well as allocative efficiency. So the output produced in perfect competition is higher.

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