Compare a purely competitive industry with a monopoly with i

Compare a purely competitive industry with a monopoly with identical costs. The competitive firm will produce: O Lower output and charge a lower price O Lower output and charge the same price O Greater output but charge a higher price O Greater output but charge the same price Type here to search

Solution

A perfectly competitive firm produces an efficient level of output by charging price equals to marginal cost.A monopolist does not produce optimal output.It changes higher price.Equilibrium condition in monopoly is when MR=MC.The costs are identical in this case.The monopolist would produce less and charge higher price but the competitive firm would produce more and charge the same price.

Thus,answer-terrorism output but charge same price.