Saturday, August 13, 2011

AP ECONOMICS MULTIPLE CHOICE! 10 EASY POINTS!?

The answer is A. Normally, the monopolist will set the price and output when MC=MR which the price is higher and the output is smaller then in the perfectly competitive market.If the commission force it to set the price at MC=P or MC intersect the demand curve, the price and output will be the same as in the perfectly competitive market. The consumers will gain the benefit which is what the commission wants to do.

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