Which statement correctly compares monopolistic competition with monopoly?

1. A Option A: The monopolist charges a price above marginal cost while the monopolistic competitor charges a price equal to marginal cost
2. B Option B: Both the monopolist and the monopolistic competitor operate at the efficient scale
3. C Option C: The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve
4. D Option D: The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run

Answer checked 11 October 2026 · How we write and check questions