Assuming instead that the market depicted in Figure 8.1 is perfectly competitive, the equilibrium price and output would be:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium price and output are determined by the intersection of the supply and demand curves. In Figure 8.1, the supply curve is upward sloping and the demand curve is downward sloping. The equilibrium price is P2 and the equilibrium output is Q2.

Assuming Instead That the Market Depicted in Figure 8