Contrasted with a solitary cost restraining infrastructure, a totally serious industry creates more result and charges a lower cost. A) results in a greater economic profit and consumer surplus.
What happens when a market that is highly competitive turns into a monopoly?
While consumers and society suffer, the producer gains. There will only be one seller if perfectly competitive markets become monopolies. Customers will be taken advantage of by the monopolist. There will be no other means for customers to buy products and services.
Why is the quantity produced by a monopoly lower than the quantity produced by competitors?
Monopoly Production Point: A monopolist can charge the price based on the market demand curve for the quantity it produces when it produces the quantity that is determined by the intersection of MR and MC.In this way, monopolists produce less however charge in excess of a firm in a cutthroat market.
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