If the Industry Depicted in This Graph Were Purely Competitive

question 61

Multiple Choice

If the industry depicted in this graph were purely competitive, then the market price would be

• A)$25, which is higher than what the price would have been if the industry were a monopoly.
• B)$25, which is lower than what the price would have been if the industry were a monopoly.
• C)$20, which is higher than what the price would have been if the industry were a monopoly.
• D)$20, which is lower than what the price would have been if the industry were a monopoly.

---

Definitions:

Business Production

Activities involved in the creation of goods and services to meet consumer demand.

Employment

The state of having paid work, where an individual offers their skills and labor in exchange for compensation.

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in an economy and the total output produced by firms at different price levels.

Resource Costs

Expenses associated with the acquisition of resources needed for production, including materials, labor, and capital.