Table 17-11
Only two firms, ABC and XYZ, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.
-Refer to Table 17-11. If this market were perfectly competitive instead of oligopolistic, what quantity would be produced?
A)25
B)35
C)50
D)70

Question

Table 17-11
Only two firms, ABC and XYZ, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost. 
-Refer to Table 17-11. If this market were perfectly competitive instead of oligopolistic, what quantity would be produced?
A)25 
B)35 
C)50 
D)70

Quizplus · Accepted Answer

In a perfectly competitive market, output is determined where marginal cost equals marginal revenue, which is at a quantity of 50 in this case.

Table 17-11 Only Two Firms, ABC and XYZ, Sell a Particular Product