Which of the following statements is true?
A. A perfectly competitive industry produces more output and charges the same price as a single-price monopoly.
B. A perfectly competitive industry produces less output but charges a lower price than a single-price monopoly.
C. A perfectly competitive industry produces less output and charges the same price as a single-price monopoly.
D. A perfectly competitive industry produces more output and charges a lower price than a single-price monopoly.
The correct answer is D. A perfectly competitive industry produces more output and charges a lower price than a single-price monopoly.
Single-Price Monopoly
A single price monopoly is one that cannot charge different prices to different customers. All the customers have price information, so they all will pay only the same price as other customers, and there is no price discrimination.