Figure 8.9 Figure 8.9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.9.The difference between the monopoly's price and the perfectly competitive industry's price is:

Question

Figure 8.9  Figure 8.9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.9.The difference between the monopoly's price and the perfectly competitive industry's price is:

Quizplus · Accepted Answer

The perfectly competitive price is where the demand and the marginal cost curves intersect, which is at $31. The monopoly's price is where the demand curve intersects the marginal revenue curve, which is at $44. Therefore, the difference between the two prices is $13 ($44 - $31).

Figure 89 Figure 8