ao 1 C3 0 a 4 MR 0 Quantity 0 Quantity Firm A Firm B Refer t

ao $1 C3 0 a $4 MR 0 Quantity 0 Quantity Firm A Firm B Refer to the diagranfs. Firm A is a O pure monopoly and Firm B is a pure competitor. O pure competitor, as is Firm B. O pure monopoly as is Firm B. O pure competitor and Fim B is a pure monopoly

Solution

Firm A faces a horizontal demand curve and D=MR, firm A is perfectly competitive firm. On the other hand, firm B faces a downward sloping demand curve, it is a monopoly.

Option D is correct.