-Refer to Figure 9-9. What is the difference between the monopoly's price and perfectly competitive industry's price?
A) The monopoly's price is higher by $9.50.
B) The monopoly's price is higher by $13.
C) The monopoly's price is higher by $3.50.
D) The monopoly's price is higher by $21.

Question

-Refer to Figure 9-9. What is the difference between the monopoly's price and perfectly competitive industry's price?
A) The monopoly's price is higher by $9.50. 
B) The monopoly's price is higher by $13. 
C) The monopoly's price is higher by $3.50. 
D) The monopoly's price is higher by $21.

Quizplus · Accepted Answer

In a monopoly, the price is typically higher than in a perfectly competitive market due to the lack of competition. The given choice indicates that the monopoly's price is higher by $13, which is the correct difference according to the context provided.