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In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the marginal cost is $60. What would happen to the price in each market if the marginal cost increased from $60 to $75?
The monopoly would raise its price to $115, and the price in the perfectly competitive market would remain unchanged at $60.
The monopoly would raise its price by less than $15, and the price in the perfectly competitive market would increase to $75.
The monopoly would raise its price by $75, and the price in the perfectly competitive market would increase to $75.
The price in both markets would increase by $15.
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