Nmonopolistic competition, each firm's markup that in perfect competition, and the price is than in perfect competition. a. is the same as; higher b. exceeds; higher c. is the same as; same as d. exceeds; same as the total quantity produced by the firms in monopolistic competition is the total quantity produced by firms in perfect competition. a. greater than b. less than c. equal to

The correct answer is option B.

The correct answer is option B.

Explanation:

In a monopolistic market, the markup of each firm is higher than that of a firm in perfect competition. Price is higher as well. The firm in perfect competition is a price taker. The price is determined by the market forces. While, on the other hand, in a monopolistic market the firm is price maker. The price is determined by the interaction of marginal revenue and marginal cost.  

Perfect competition has both productive as well as allocative efficiency. So the output produced in perfect competition is higher.

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