-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a perfectly competitive industry.What will be the equilibrium price and output respectively?
A)$40 and 15.
B)$40 and 30.
C)$60 and 20.
D)$60 and 25.
E)$70 and 15.

Question

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a perfectly competitive industry.What will be the equilibrium price and output respectively?
A)$40 and 15. 
B)$40 and 30. 
C)$60 and 20. 
D)$60 and 25. 
E)$70 and 15.

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium price and output occur where the industry supply curve intersects the industry demand curve. Based on the information provided (assuming a standard supply and demand graph setup), choice C ($60 and 20) correctly identifies the equilibrium price and output, as it suggests a common point where the quantity supplied equals the quantity demanded.