Use the following diagram depicting a dominant firm market to answer the following questions:

-In equilibrium, how many units will the dominant firm supply?
A) 45 units
B) 60 units
C) 90 units
D) 135 units

Question

Use the following diagram depicting a dominant firm market to answer the following questions:

-In equilibrium, how many units will the dominant firm supply?
A) 45 units 
B) 60 units 
C) 90 units 
D) 135 units

Quizplus · Accepted Answer

In equilibrium, the dominant firm will supply the quantity where its marginal cost equals marginal revenue, which is typically the highest quantity option provided.

Use the Following Diagram Depicting a Dominant Firm Market to Answer