Table 17-11
Only two firms, ABC and XYZ, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.

-Refer to Table 17-11. If this market were perfectly competitive instead of oligopolistic, what would the price be?

Question

Table 17-11
Only two firms, ABC and XYZ, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.
 
-Refer to Table 17-11. If this market were perfectly competitive instead of oligopolistic, what would the price be?

Quizplus · Accepted Answer

In a perfectly competitive market, price is equal to marginal cost. Both firms have a constant marginal cost of $8, so the price would also be $8.

Table 17-11 Only Two Firms, ABC and XYZ, Sell a Particular Product