Figure 9.11 Figure 9.11 shows the cost and demand curves for a monopolist.
-Refer to Figure 9.11.If this industry was organised as a perfectly competitive industry, the market output and market price would be

Question

Figure 9.11  Figure 9.11 shows the cost and demand curves for a monopolist.
-Refer to Figure 9.11.If this industry was organised as a perfectly competitive industry, the market output and market price would be

Quizplus · Accepted Answer

In a perfectly competitive industry, price is equal to marginal cost. The point where the marginal cost curve intersects the supply curve is at a quantity of 83, which corresponds to a price of $22. This is different from the monopolist's output and price, which are at a quantity of 62 and a price of $28, respectively.

Figure 911 Figure 9