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What is the difference between the derived​ (wholesale) demand curve for competitive distributors and the derived​...

What is the difference between the derived​ (wholesale) demand curve for competitive distributors and the derived​ (wholesale) demand curve for a monopoly​ distributor? Why is there a​ difference?

A.

The wholesale demand curves differ because monopoly distributors are price takers.​ So, their marginal revenue equals the market​ price; whereas, the competitive​ distributor's marginal revenue equals the marginal cost.

B.

The wholesale demand curves differ because monopoly distributors are price makers.​ So, their marginal revenue equals the market​ price; whereas, the competitive​ distributor's marginal revenue is different than the market price.

C.

The wholesale demand curves differ because competitive distributors are price takers.​ So, their marginal revenue is lower than the market​ price; whereas, the monopoly​ distributor's marginal revenue is higher than the market price.

D.

The wholesale demand curves differ because competitive distributors are price takers.​ So, their marginal revenue equals the market​ price; whereas, the monopoly​ distributor's marginal revenue is different than the market price.

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Answer #1

D.

The wholesale demand curves differ because competitive distributors are price takers.​ So, their marginal revenue equals the market​ price; whereas, the monopoly​ distributor's marginal revenue is different than the market price.

Explanation :

Perfectly competitive firm produce homogeneous product and they are price taker. So they charge price as market price. they face horizontal demand curve. So marginal revenue is equals to price in perfect competition.

Monopoly are price maker. Thus they face downward sloping demand curve and marginal revenue curve is below the demand curve.

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