EDU500 MIDTERM PAST PAPERS
Firms whose clients are more have all the more imposing business model power. A monopolistic firm faces inelastic interest in the item and its interest bend is adversely slanted. While in the wonderful contest, request bend has endless flexibility
. Benefit MAXIMIZATION UNDER MONOPOLY In imposing a business model, the firm acquires benefit when MC=MR and MC bend cuts the MR bend from beneath. MC bend isn’t the stockpile bend of the firm as it was in the ideal contest.
This is likewise the significant distinction between imposing a business model and an amazing contest. I. The benefit boosting or best degree of result is given where MR=MC. Cost is then perused off the interest bend which is descending slanting. Note in any case, the distinction with wonderful rivalry, where the association’s interest bend was level and not descending slanting like the business.
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In a restraining infrastructure, notwithstanding, the firm “is” the business and along these lines faces a similar interest bend as the business (a descending slanting one). ii. Contingent fair and square of AC where MR=MC, the monopolist may be procured supernormal benefits, equaling the initial investment or limiting short-run misfortunes. EDU500 MIDTERM PAST PAPERS
. Cost is more prominent than MR in balance. Along these lines, the cost isn’t equivalent to MC. All things considered, in this way, the inventory bend for the firm isn’t the rising piece of the MC bend. EDU500 MIDTERM PAST PAPERS
This is likewise the significant distinction between an imposing a business model and an amazing contest. I. The benefit boosting or best degree of result is given where MR=MC. Cost is then perused off the interest bend which is descending slanting. Note in any case, the distinction with wonderful rivalry, where the association’s interest bend was level and not descending slanting like the business.
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