Question 1
An important distinction between perfect competition and monopoly is that in
◦ perfect competition, there is no distinction between the firm and the industry.
◦ perfect competition, the firm is the industry.
◦ monopoly, the firm faces the market demand curve.
◦ monopoly, the firm produces less than the total quantity supplied.
Question 2
In a monopoly, the market demand curve is
◦ the same as the demand curve facing the firm.
◦ the summation of all the individual firm's cost curves.
◦ nonexistent.
◦ the marginal cost curve above minimum average variable cost.