Question

What is true for monopoly that is not true for perfect competition? profit is maximized where mr = mc. the industry demand curve is downward sloping. the firm and the industry are exactly the same entity. positive economic profits may be earned in the short run?

Answer 1

The answer is the third option. It is true for a monopoly that is not true perfect competition that the firm and the industry are exactly the same entity.

In a perfect competition the industry (producers) is composed of a large number of companies or firms that compete in the market, trying to give the best product/service to the lowest cost, while in a monopoly there is one only firm which constitute the industry.