A monopoly firm is different from a competitive firm in that:
A. a monopolist's demand curve is perfectly inelastic whereas a competitive firm's demand curve is perfectly elastic.
B. a monopolist can influence market price whereas a competitive firm cannot.
C. there are many substitutes for a monopolist's product whereas there are no substitutes for a competitive firm's product.
D. a competitive firm has a U-shaped average cost curve whereas a monopolist does not.
Answer: B
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