Use the following to answer questions :
Figure 10-1
-If the market indicated by Figure 10-1 is perfectly competitive, the level of output and price will be, respectively:

Question

Use the following to answer questions :
Figure 10-1 
-If the market indicated by Figure 10-1 is perfectly competitive, the level of output and price will be, respectively:

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium level of output and price is determined where the supply curve (which can be assumed to be the marginal cost curve for the firm) intersects the demand curve. Choice B (H, C) correctly identifies this intersection point, indicating the equilibrium output (H) and price (C).

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