Using the table above, if this were a competitive industry rather than a monopoly, what would be the price of the product?

Question

      A Monopoly Firm

Quantity Sold	Price per Unit	Marginal Cost
0	$17
1	16	$4
2	15	6
3	14	8
4	13	10
5	12	12
6	11	14
7	10	16

Using the table above, if this were a competitive industry rather than a monopoly, what would be the price of the product?

Answer 1

Perfectly Competitive firms produce where P=MC

Their MR = P as they have a horizontal MRDARP curve, so producing the Profit Maximizing quantity the Perfectly Competitive firm produces where P=MC or, at a price of $12 and a MC of $12.