Refer to the figure above. In the perfectly competitive market, the average total cost of the small business owner will be:A)2B) 3.5C)4D)6.5 This is related to the difference between monopoly and competitive market.Price121110MC9.87.ATC9.5.Market Equilibrum Price P 152.many identical companiesMR (A monopolist)10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Quantity

Equilibrium under perfect competition is at price = MC level MC insects the pice at 23 units At Q =…

Answered: the perfectly competitive market, the…

Business

Economics

the perfectly competitive market, the average total cost of the small business owner will be: A)2 B) 3.5 C)4 D)6.5

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Monopoly

Section: Chapter Questions

Problem 6.10P

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Question

Refer to the figure above. In the perfectly competitive market, the average total cost of the small business owner will be: A)2 B) 3.5 C)4 D)6.5

This is related to the difference between monopoly and competitive market.
Price
12
11
10
MC
9.
8
7.
ATC
9.
5.
Market Equilibrum Price P 15
2.
many identical companies
MR (A monopolist)
10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Quantity

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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