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Recap of Accounting Process

Price exceeds...

Question

Price exceeds MC under monopoly, but not under perfect competition.

A

True

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B

False

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Solution

The correct option is A True
True.
This is because under perfect competition, AR = MR, while under monopoly AR > MR. Even when equilibrium in both cases is struck when MR = MC, under perfect competition the price is equal to MC at the equilibrium, while, P > MC at the monopoly firm's equilibrium.

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