A monopolist can produce at a constant average (and marginal) cost ofAC = MC = $50, which means every unit produced by the monopoly firm costs the same $50 to the firm.

The monopoly firm faces a market demand curve given byP = 500 - Q.

What is thedifferencein the market/industry output when this market is served by a perfectly competitive industry with many firms instead of a single seller?

1. The perfectly competitive industry will supply the same amount of output as the monopoly firm
2. The perfectly competitive industry will supply 150 fewer units of output than the monopoly firm.
3. The perfectly competitive industry will supply 225 more units of output than the monopoly firm.
4. I cannot tell the difference from the information given in this problem.