Suppose a perfectly competitive firm and a monopolist are both charging $5 for their respective products. From this, one can infer that:
A. the competitive firm is charging too much, and the monopolist is charging too little.
B. the marginal benefit from selling an additional unit of output is $5 for the competitive firm and less than $5 for the monopolist.
C. the marginal benefit from selling an additional unit of output is $5 for both firms.
D. the marginal benefit from selling an additional unit of output is less than $5 for both firms.
Answer: B
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