The graph shown represents the cost and revenue curves faced by a monopoly. 22 P3 P2 P1 PO MC ATC Q1 Q2 MR Which of the following statements is true? 1. The outcome in a monopoly market would be Q1, P1. II. The outcome in a perfectly competitive market would be Q2, P2. III. The efficient outcome is Q2, P2. Multiple Choice I and II only ○ I only II and Ill only I, II, and III b
The graph shown represents the cost and revenue curves faced by a monopoly. 22 P3 P2 P1 PO MC ATC Q1 Q2 MR Which of the following statements is true? 1. The outcome in a monopoly market would be Q1, P1. II. The outcome in a perfectly competitive market would be Q2, P2. III. The efficient outcome is Q2, P2. Multiple Choice I and II only ○ I only II and Ill only I, II, and III b
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 13E
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Transcribed Image Text:The graph shown represents the cost and revenue curves faced by a monopoly.
22
P3
P2
P1
PO
MC
ATC
Q1
Q2
MR
Which of the following statements is true?
1. The outcome in a monopoly market would be Q1, P1.
II. The outcome in a perfectly competitive market would be Q2, P2.
III. The efficient outcome is Q2, P2.
Multiple Choice
I and II only
○ I only
II and Ill only
I, II, and III
b
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