-In the above figure, a perfectly competitive market will have a price of ________, and a single-price monopoly will have a price of ________.
A) P2 and quantity of Q1; P1 and quantity of Q1
B) P2 and quantity of Q2; P1 and quantity of Q1
C) P2 and quantity of Q2; P3 and quantity of Q1
D) P1 and quantity of Q1; P2 and quantity of Q2
E) P3 and quantity of Q3; P1 and quantity of Q1

Question

-In the above figure, a perfectly competitive market will have a price of ________, and a single-price monopoly will have a price of ________.
A) P2 and quantity of Q1; P1 and quantity of Q1 
B) P2 and quantity of Q2; P1 and quantity of Q1 
C) P2 and quantity of Q2; P3 and quantity of Q1 
D) P1 and quantity of Q1; P2 and quantity of Q2 
E) P3 and quantity of Q3; P1 and quantity of Q1

Quizplus · Accepted Answer

In a perfectly competitive market, the price is determined where supply equals demand, which is at P2 with a quantity of Q2. A single-price monopoly will set a higher price to maximize profit, which is at P1, but with a lower quantity of Q1, as monopolies restrict output to increase prices.

-In the Above Figure, a Perfectly Competitive Market Will Have