Asked by Iqbal Qayum on Jul 23, 2024
Verified
Refer to Table 17-4. If this market were perfectly competitive instead of oligopolistic, what would the price be?
A) $14
B) $18
C) $8
D) $4
Perfectly Competitive
A market structure where many firms offer a homogeneous product, there are no barriers to entry or exit, and all firms are price takers.
Oligopolistic
Oligopolistic refers to a market structure characterized by a small number of large firms dominating the market, leading to limited competition.
Marginal Cost
The extra expense derived from the production of an additional unit of a product or service.
- Evaluate the effectiveness of outputs across diverse market models, including situations of perfect competition and monopolies.
Verified Answer
AG
Audrey GarcesJul 29, 2024
Final Answer :
C
Explanation :
In a perfectly competitive market, the price equals the marginal cost. Given that the marginal cost is $8, the price would also be $8.
Learning Objectives
- Evaluate the effectiveness of outputs across diverse market models, including situations of perfect competition and monopolies.