Figure 8-11 Figure 8-11 shows the cost and demand curves for a monopolist.
-Refer to Figure 8-11.If this industry were organised as a perfectly competitive industry,the market output and market price would be

Question

Figure 8-11  Figure 8-11 shows the cost and demand curves for a monopolist.
-Refer to Figure 8-11.If this industry were organised as a perfectly competitive industry,the market output and market price would be

Quizplus · Accepted Answer

In a perfectly competitive market, the market price is determined by the intersection of market demand and market supply. In this case, the market demand curve is the same as the demand curve facing the monopolist. Therefore, the market output would be where the demand curve intersects with the marginal cost curve (MC) at point E, which has an output of 83 and a price of $22.

Figure 8-11 Figure 8-11 Shows the Cost and Demand