Based on the Diagram Above,what Is the Difference Between the Purely

question 131

Multiple Choice

Based on the diagram above,what is the difference between the purely competitive level of output and the pure monopolist level of output?

• A) 10
• B) 20
• C) 50
• D) 100 The purely competitive level of output occurs where the demand curve crossed the MC curve,that is,100 units.The monopoly output occurs where MC = MR,that is,50 units.The difference is 50 units.

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Definitions:

Efficient Frontier

A set of optimal portfolios offering the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Human Capital

The economic value of an individual’s skills, knowledge, and experience, considered in the context of their ability to contribute to an economy.

Arbitrage Opportunity

The opportunity to buy an asset at a lower price in one market and sell it at a higher price in another, securing a risk-free profit.

Short Position

A trading strategy involving the sale of a security that is not owned by the seller, with the expectation that the price will decline, allowing it to be bought back at a lower price.