What is the reason for the marginal revenue of a monopolist below its average revenue? Why is marginal revenue not equal to price in a monopoly? Explain why firms that wish to maximize their profits should prod
What Is a Monopoly? Margin of Safety Definition and How to Use it What Is Money Mindset? What Is Margin & Should You Invest on It? What Is a Market Maker? What Is Market Sentiment and How Is It Measured? What Is Market Cap and Why Does It Matter?
b. Output is larger but price is highe In a monopoly, consumer surplus is: a. larger than under perfect competition. b. equal to that under perfect competition. c. smaller than under perfect competition. d. None of these choices. Discuss the three conditions of perfect competition. What ...
Why is average revenue always equal to price? Why is this only correct in a perfectly competitive market? What is the reason to sacrifice the short-run profits for the market position? Explain why trade between two countries can be profitable for both even if one is better ...
close to 1, indicates a monopoly situation. However, when the Lerner index tends towards 0, the competition level is said to be very high. A Lerner index < 0 implies a price below the marginal cost that could occur due, for example, to a non optimal banking practice. Algebraically, the...
According to Athey and Luca (2019), one major challenge for review platforms is to increase the informational content of the average ratings presented to users. In a broader sense, reputational dynamics in heterogeneous goods markets affect firms’ survivability, innovation investments and monopoly ...
Since there are many types of agricultural products in the sample data, we did not add the variable “prices” into the model in the large sample data analysis. However, we compared the prices of different products in the sample cooperatives; the average sales price of e-commerce channels ...
A central bank is an institution that oversees a nation's monetary policy and money supply. Central banks often have a legal monopoly on the production and distribution of money. In times of downturn or high inflation, they may engage a range of monetary tools to stabilize the economy. The...
a multiple-plant monopoly cannot maximize its profit; it should maximize its total revenue, even if costs are not zero; (iii) a firm's goal should be total revenue maximization rather than profit maximization, when marginal cost is not equal to zero; (iv) profit maximization behaviour does ...
Why does the average revenue curve and the marginal revenue curve start from a point on the Y-axis even when the output is 0? Should the MR curve be straight with a monopoly when graphing marginal revenue, and is MR supposed to just equal MP?