A Duopoly Example: Price and Quantity Supplied o The price of water in a perfectly competitive market would be driven to where the marginal cost is zero. P=MC = SO Q=120 gallons oThe price and quantity in a monopoly market would be where total profit is maximized P=$60 Q=60 gallons H arc Inc items and derived items copyright C 2001 by Harcourt, IncHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. A Duopoly Example: Price and Quantity Supplied uThe price of water in a perfectly competitive market would be driven to where the marginal cost is zero: P = MC = $0 Q = 120 gallons uThe price and quantity in a monopoly market would be where total profit is maximized: P = $60 Q = 60 gallons