Question

These graphs represent the price and output quantities of purses under perfect competition and monopoly. jackie wants to purchase five purses to give to her friends as gifts. how much more or less will jackie pay overall for these five purses in a perfect competition than in a monopoly? two line graphs between number of purses and price represent perfect competition and monopoly. the first graph shows a u-shaped curve and then ascends upward as a straight line. the second shows two intersecting lines and a third touching line. a. $10 less b. $20 less c. $40 less d. $20 more

Answer 1

The cost of five purses in a monopoly is $4000, but without the price in a perfect competition, we cannot compare the difference. We need the pricing from the perfectly competitive market to calculate how much Jackie would pay comparatively.

Step-by-step explanation:

The student's question involves comparing the total cost of five purses in a perfect competition market versus a monopoly. Under monopoly conditions, given the provided information, Jackie would pay 5 x $800 = $4000 for the purses. Unfortunately, there's no direct information about the cost of purses in a perfectly competitive market within the provided text. We need this to accurately calculate the difference in cost that Jackie would pay between the two market structures.

Since we don't have the price of the purses in a perfectly competitive market, we can't complete the comparison to determine how much more or less Jackie would pay in a perfect competition compared to a monopoly. To provide an accurate answer, we would require data or a graph that shows the price of purses in a perfectly competitive market.