a. Consider a market like the one illustrated in Figure 13.5, where all firms have the same average cost curve. If a competitive firm in this market tried to set price above the minimum point on its average cost curve, how many units would it sell?
b. If a monopoly did the same thing, raising its price above average cost, what would happen to the number of units it sells: Does it rise, fall, or remain unchanged?
c. What accounts for the difference between your answers to parts a and b?