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

question 5

Multiple Choice

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

• A) 5
• B) 20
• C) 70
• D) 90 The purely competitive equilibrium output occurs where the demand curve crosses the MC curve,that is,110 units.The monopoly equilibrium output occurs where MC = MR,that is,90 units.The difference is 20 units.

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