8 newconnectmheducationcom onnect MHE Reader 1 One Defining

newconnect.mheducation.com onnect MHE Reader 1 One Defining Characteristic Of Pure oly Saved You received no credit for this question in the previous atten Use the following graph to answer the next question. MC 16 Print 14 90 160 195 If the industry were perfectly competitive, the quantity of output produced would be Multiple Choice 90

Solution

For monopoly profit maximization condition

MR = MC

For perfectly competitive firm profit maximization

P = MC  

so it is given by the intersection of AR i.e. D curve and MC curve of the firm in the diagram

therefore Q = 160