Question

How does the market price of a good in a monopoly market compare with the market price of the same good in a perfectly competitive market?

A. The price is higher.

B. The price is lower.

C. The prices cannot be compared.

D. The prices are the same.

I am thinking A or D?
Im not too sure..

Answer 1

@superpac @Nurali

Answer 2

hmm this is tricky but im going to go with D

Answer 3

@Nurali what do you think?

Answer 4

i think The price is higher.

Answer 5

In a monopoly, prices are usually higher because there's no competition, whereas in a competitive market items that are not priced accordingly may never sell.

For example, if you are the only breadmaker in town you can charge whatever you want - if people want bread they have to pay your prices, period. But in a competitive market where there are 20 other breadmakers, your prices have to remain competitive with the other 20 or no one will buy your bread.

Answer 6

@superpac do you agree with what he said?

Answer 7

Yeah im going to have to agree.