33321/quizzes/79441/take Price and cost (dollars per pound of steak) 20.00 18.00

Question

33321/quizzes/79441/take Price and cost (dollars per pound of steak) 20.00 18.00 16.00 4.00. 2.00 0.00 8.00 6.00 4.00.. 2.00 S MC MR 0 ,000 2,000 3,000 4,000 5,000 Quantity (pounds of steaks per hour) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is perfectly competitive, the quantity of steak is monopoly, the quantity of steak is pounds, and when the market is a pounds up

Explanation / Answer

When the market is perfectly competitive, the quantity of steak is 3000 pounds and when the market is a monopoly, the quantity of steak is 2000 pounds.

because, in a competitive market, D=MR=P . and firm produce the output where MR=MC because it maximize the profits. so at output 3000 , MR=MC and when market is monopoly, firm choose output wher MR=MC. so output is 2000.

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