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:

Profits

The financial gain obtained when revenue from business activities exceeds expenses and taxes.

GDP

Gross Domestic Product is defined as the cumulative monetary or market value of all the finished products and services generated inside a country during a particular time frame.

Final Goods

Products that have completed the production process and are ready for sale to the consumer or end-user, excluding intermediate goods used in production.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy.