Practice question · Sort into groups
Sort into monopoly vs perfect competition characteristics.
Groups: Monopoly · Perfect competition
- Zero economic profit in long run
- Price taker
- Deadweight loss
- Price maker
Hints
- One structure has a single seller, the other many.
- Only one of the two produces a welfare loss.
Show the answer
Monopoly: , Deadweight loss, Price maker
Perfect competition: , Zero economic profit in long run, Price taker
Why
Monopoly: price maker, MR < P, DWL. Competition: price taker, MR = P, zero profit, no DWL.
Practise Monopoly
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