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Use FIGURE 2 to answer the question below. The figure shows both a perfectly competitive industry and a monopoly. For perfect competition, use P = MC (or D=MC) to find P and Q. For Monopoly, use MR-MC to find P and Q, recalling that Price is always read off the demand curve. FIGURE 2 Price and Cost 30 MC ATC 22 23 20 10 10 D MR 15 25 Units of Output = Monopoly Profits 450, Perfectly Competitive Industry Profits 575 Monopoly Profits 300. Perfectly Competitive Industry Profits = 500 O Monopoly Profits = 250, Perfectly Competitive Industry Profits = 75 O Monopoly Profits =150, Perfectly Competitive Industry Profits = 75 = O Monopoly Profits 575, Perfectly Competitive Industry Profits = 500

Use FIGURE 2 to answer the question below. The figure shows both a perfectly competitive industry and a monopoly. For perfect competition, use P = MC (or D=MC) to find P and Q. For Monopoly, use MR-MC to find P and Q, recalling that Price is always read off the demand curve. FIGURE 2 Price and Cost 30 MC ATC 22 23 20 10 10 D MR 15 25 Units of Output = Monopoly Profits 450, Perfectly Competitive Industry Profits 575 Monopoly Profits 300. Perfectly Competitive Industry Profits = 500 O Monopoly Profits = 250, Perfectly Competitive Industry Profits = 75 O Monopoly Profits =150, Perfectly Competitive Industry Profits = 75 = O Monopoly Profits 575, Perfectly Competitive Industry Profits = 500

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 15CQ
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Use FIGURE 2 to answer the question below. The figure shows both a perfectly competitive industry and a monopoly. For perfect competition, use P = MC (or D=MC) to find P and Q. For Monopoly, use MR-MC to find P and Q, recalling that Price is always read off the demand curve. FIGURE 2 Price and Cost 30 MC ATC 22 23 20 10 10 D MR 15 25 Units of Output = Monopoly Profits 450, Perfectly Competitive Industry Profits 575 Monopoly Profits 300. Perfectly Competitive Industry Profits = 500 O Monopoly Profits = 250, Perfectly Competitive Industry Profits = 75 O Monopoly Profits =150, Perfectly Competitive Industry Profits = 75 = O Monopoly Profits 575, Perfectly Competitive Industry Profits = 500
Transcribed Image Text:Use FIGURE 2 to answer the question below. The figure shows both a perfectly competitive industry and a monopoly. For perfect competition, use P = MC (or D=MC) to find P and Q. For Monopoly, use MR-MC to find P and Q, recalling that Price is always read off the demand curve. FIGURE 2 Price and Cost 30 MC ATC 22 23 20 10 10 D MR 15 25 Units of Output = Monopoly Profits 450, Perfectly Competitive Industry Profits 575 Monopoly Profits 300. Perfectly Competitive Industry Profits = 500 O Monopoly Profits = 250, Perfectly Competitive Industry Profits = 75 O Monopoly Profits =150, Perfectly Competitive Industry Profits = 75 = O Monopoly Profits 575, Perfectly Competitive Industry Profits = 500
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