Which characteristic is shared by monopoly and monopolistic competition, but NOT by perfect competition?

CA Foundation · Business Economics · PYQS · January 2026
Which characteristic is shared by monopoly and monopolistic competition, but NOT by perfect competition?
(A) A. Price equal to marginal cost
(B) B. Supernormal profits in long run
(C) C. Price higher than marginal cost
(D) D. No selling costs

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Price higher than marginal cost

Topics: Price Determination in Different Markets

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