Confronted with the same unit cost data, a monopolistic producer will charge Group of answer choices

a higher price and produce a smaller output than a competitive firm.

a higher price and produce a larger output than a competitive firm.

the same price and produce the same output as a competitive firm.

a lower price and produce a smaller output than a competitive firm.

a higher price and produce a smaller output than a competitive firm

Explanation:

A monpolistically competitive firm is a firm that:

1. Sells differentiated products from other firms in the industry.

2. Has many buyers and sellers

3. Is a price maker

4. Has no barrier to entry or exist of firms

An example of a monpolistically competitive firm is a resturant.

A competitive firm is a firm that:

1. Sells identical goods with other firms in the industry.

2. Is a price taker. Prices are set by forces of demand and supply

3. Has many buyers and sellers

4. There are no barriers to entry or exist of firms.

When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.

While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.

A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.