Which of the following is true regarding the similarities and differences in monopolistic competition and monopoly ?

Question

Xaibi Aslam · Accepted Answer

The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run

Xaibi Aslam · Answer

the monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve

Xaibi Aslam · Answer

the monopolist charges a price above marginal cost while the monopolistic competitor charges a price equal to marginal cost

Xaibi Aslam · Answer

Both the monopolist and the monopolistic competitor operate at the efficient scale

Question #48674