23$70$60I of$50$40$30$20-LRATC = LRMC%3D$10Demand = PMR$050100150200250Output (Q)The diagram above shows the demand and cost curves for a market that could either be a monopoly or perfectly competitive in Long-Run Equilibrium. If the market above were Perfectly Competitive, each individual firm would earnin Total Profit (ProducerSurplus) in the Long-Run.Select one:a. $1,000b. $2,500С.zero$2.000

A perfectly competitive firm has constant price so it is equal to marginal revenue. It maximizes…

23 $70 $60 - of $50 $40 $30 $20 -LRATC = LRMC $10 Demand = P MR $0 50 100 150 200 250 Output (Q) The diagram above shows the demand and cost curves for a market that could either be a monopoly or perfectly competitive in Long- in Total Profit (Producer Run Equilibrium. If the market above were Perfectly Competitive, each individual firm would earn Surplus) in the Long-Run. Select one: O a. $1,000 O b. $2,500 O c. zero O d. $2.000

23 $70 $60 - of $50 $40 $30 $20 -LRATC = LRMC $10 Demand = P MR $0 50 100 150 200 250 Output (Q) The diagram above shows the demand and cost curves for a market that could either be a monopoly or perfectly competitive in Long- in Total Profit (Producer Run Equilibrium. If the market above were Perfectly Competitive, each individual firm would earn Surplus) in the Long-Run. Select one: O a. $1,000 O b. $2,500 O c. zero O d. $2.000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 1.1CE

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