Use the following figure to answer the question : Figure 11-6 : shows the profit-maximizing output of a monopolist who faces constant average and marginal costs.
-Refer to Figure 11-6.If the firm were operating in a perfectly competitive market,the equilibrium quantity would be _____.
A)OH
B)OQ''
C)OQ
D)OQ'

Question

Use the following figure to answer the question : Figure 11-6 : shows the profit-maximizing output of a monopolist who faces constant average and marginal costs. 
-Refer to Figure 11-6.If the firm were operating in a perfectly competitive market,the equilibrium quantity would be _____.
A)OH 
B)OQ'' 
C)OQ 
D)OQ'

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium quantity is where the demand curve intersects with the marginal cost curve. In this figure, the marginal cost curve is constant, and the demand curve intersects it at point OQ. Therefore, if the firm were operating in a perfectly competitive market, the equilibrium quantity would be OQ.

Use the Following Figure to Answer the Question : Figure