Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (DD) and supply (S=MCS=MC) curves in the market for hot dogs.

Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from perfect competition.

Perfect Competition 5.0 4.5 PC Outcome 4.0 S=MC 3.5 3.0 2.5 PRICE (Dollars per hot dog) 2.0 1.5 1.0 0.5 D 0 0 20 40 80 80 100 120 140 160 180 200 QUANTITY (Hot dogs)Monopoly 5.0 -+ 4.5 MC Monopoly Outcome 1.0 3.5 3.0 2.5 PRICE (Dollars per hot dog) 2.0 1.5 1.0 0.5 D MR 0 20 40 80 80 100 120 140 160 180 200 QUANTITY (Hot dogs)