The figure above shows the market for airplanes.
-Suppose the airplane market is an oligopoly.According to the figure above,if the firms act as a monopolist,the quantity produced will be ________ planes per week,and if the firms act as competitors,the quantity produced will be ________ planes per week.

Question

Quizplus · Accepted Answer

If the firms act as a monopolist, they will produce where MR=MC, which is at a quantity of 6 planes per week. 
If the firms act as competitors, they will produce where the marginal cost (MC) curve intersects the marginal revenue (MR) curve, which is at a quantity of 12 planes per week.

The Figure Above Shows the Market for Airplanes