Refer to the graphic above. The output produced in this market (Monopolistic) is ____ units, while produced under a comparable perfectly competitive market would have been at least ____ units.

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Chapter1: Making Economics Decisions
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Refer to the graphic above. The output produced in this market (Monopolistic) is ____ units, while produced under a comparable perfectly competitive market would have been at least ____ units. 

3)
Price
12
11-
10
MC
9
7.
ATC
6.
5-
4
3
2
1-
MR
246 8 10 12 14 16 18 20 22 24 26 28 30 Quantity
Transcribed Image Text:3) Price 12 11- 10 MC 9 7. ATC 6. 5- 4 3 2 1- MR 246 8 10 12 14 16 18 20 22 24 26 28 30 Quantity
Expert Solution
Step 1.

A monopolist produces at intersection of MR and MC curves (since MR = MC), while a competitive firm produces at intersection of Demand and MC curves (since Price = MC).

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