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How is a monopoly and a perfectly competitive firm similar?

In: Economics [Edit categories]

Answer:

Both maximize profit where MR = MC.

First answer by ID1203723888. Last edit by ID1203723888. Question popularity: 6 [recommend question].

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How are a monopolistic firm and a competitive firm similar?
The truth is that the same motives drive the monopolistic firm and the competitive firm: Both strive to maximize profits.
When profit is maximized in a perfectly competitive firm?
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
Why don't monopolistically competitive firmes produce the same out put in the long run as perfectly?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not...
In a perfectly competitive market do firms exhibit productive efficiency?
in the short-run they are not able to but in the longrun it can be attainerd as businesses want to lower their average costs!
List similarities between perfectly competitive and monopoly?
There are not many similarities between a perfectly competitive market and a monopoly. In a perfectly competitive market there are no barriers to exit and enter the market. If there are excess...