-In the above figure, the difference between the competitive industry price and that of the monopolist is
A) 0B.
B) 0A.
C) AB.
D) CE.

Question

-In the above figure, the difference between the competitive industry price and that of the monopolist is
A) 0B. 
B) 0A. 
C) AB. 
D) CE.

Quizplus · Accepted Answer

In a competitive industry, the price is determined by the intersection of supply and demand, while a monopolist sets a higher price above marginal cost. The difference between these prices is represented by the distance AB on the graph.

-In the Above Figure, the Difference Between the Competitive Industry