The following figure shows the revenue curves of a monopolist: Figure 24.6
D: Average revenue
MR: Marginal revenue
In Figure 24.6, assume that marginal costs are constant at $2, 500 and fixed costs are zero.What price and output level would result from perfect competition?
A) P = $2, 500, Q = 400
B) P = $2, 500, Q = 200
C) P = $5, 000, Q = 0
D) P = $4, 000, Q = 400
E) P = $4, 000, Q = 200
Correct Answer:
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