Exhibit 9-21
-In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MR_m represents the marginal revenue curve for a monopolist producer of bicycles and S_c = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive. The market price in a competitive market would be

Question

Exhibit 9-21

-In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MR_m represents the marginal revenue curve for a monopolist producer of bicycles and S_c = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive. The market price in a competitive market would be

Quizplus · Accepted Answer

In a perfectly competitive market, the market price is determined by the intersection of the market demand and supply curve. In this graph, the intersection point is at a price of $20. Therefore, the correct answer is C) $20.

Exhibit 9-21 -In Exhibit 9-21, D = AR Represents the Market Demand