Figure 15-9

Figure 15-9 shows the demand and cost curves for a monopolist.
-Refer to Figure 15-9.What is the difference between the monopoly output and the perfectly competitive output?
A)140 units
B)240 units
C)340 units
D)560 units

Question

Figure 15-9
  
Figure 15-9 shows the demand and cost curves for a monopolist.
-Refer to Figure 15-9.What is the difference between the monopoly output and the perfectly competitive output?
A)140 units 
B)240 units 
C)340 units 
D)560 units

Quizplus · Accepted Answer

The monopoly output is where MR = MC, which is at 460 units in Figure 15-9. The perfectly competitive output is where MC = P, which is at 800 units. The difference between the two is 800 - 460 = 340 units. Therefore, choice C is correct.

Figure 15-9 Figure 15-9 Shows the Demand and Cost Curves for a and Cost