Texts: (Figure: The Profit-Maximizing Output and Price in the Monopoly Diamond Market. Use Figure: The Profit that AC=MC=$200. Under perfect competition, the price of the good would be $200 and 8 units would be produced.
Price, cost, marginal revenue of diamond: $1,000, $800, $600, $400, $200, $0, -$200, -$400
8
MC
MR
810 16 20 Quantity of diamonds
as 600 8
Ob) $200: 16
cs 200: 8
Od $600: 16