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They produce at a different point than a competitive firm, a monopoly produces at a point where marginal revenue= marginal cost, where a competitive firm equates price to marginal cost.
The marginal cost curve is lower than the demand curve, but the monopoly charges the price at the demand curve, which is a higher price and a lower quantity than a competitive market would produce.
What else can I help you with?
The equality of P and MC means the firm is achieving?
Allocative efficiency since the industry is producing the amount of product that equates society's valuation of that product and the price of the product.
How does competition in a market affect allocative and productive efficiency?
A competitive market, firms act with their benefit at heart. If a firm is producing at productive efficiency, it produces goods at a relatively low expenditure, it can sell at low prices and hence compete well in the market.
What is meant by an efficient market equilibrium?
When there is allocative and productive efficiency, there is an efficient market equilibrium, allocative efficiency is when the products that are most wanted are produced, this is achieved when price equals marginal cost, productive efficiency is achieved when the firm is producing on the lowest point on the lowest average cost curve, this is also called the point of technical efficiency, both allocative and productive efficiency lead to an optimum allocation of resources and economic efficiency is achieved, though, this is thought to exist only in a perfectly competitive market and is lacking in other markets because monopolies and oligopolies usually have their prices above marginal cost and that is not an efficient allocation of resources and because other markets may lack the incentive to produce at the lowest cost
Who company is monopoly in Pakistan?
pakistan telecommunication company limited is a monopoly firm in pakistan. a monopoly firm is the one which has no competitors.
Dominos fast food firm is a monopolistic firm or not?
it is not a monopoly firm
The equality of P and MC means the firm is achieving?
Allocative efficiency since the industry is producing the amount of product that equates society's valuation of that product and the price of the product.
How does competition in a market affect allocative and productive efficiency?
A competitive market, firms act with their benefit at heart. If a firm is producing at productive efficiency, it produces goods at a relatively low expenditure, it can sell at low prices and hence compete well in the market.
What is meant by an efficient market equilibrium?
When there is allocative and productive efficiency, there is an efficient market equilibrium, allocative efficiency is when the products that are most wanted are produced, this is achieved when price equals marginal cost, productive efficiency is achieved when the firm is producing on the lowest point on the lowest average cost curve, this is also called the point of technical efficiency, both allocative and productive efficiency lead to an optimum allocation of resources and economic efficiency is achieved, though, this is thought to exist only in a perfectly competitive market and is lacking in other markets because monopolies and oligopolies usually have their prices above marginal cost and that is not an efficient allocation of resources and because other markets may lack the incentive to produce at the lowest cost
Who company is monopoly in Pakistan?
pakistan telecommunication company limited is a monopoly firm in pakistan. a monopoly firm is the one which has no competitors.
Dominos fast food firm is a monopolistic firm or not?
it is not a monopoly firm
What does the monopoly surplus graph reveal about the market power and economic efficiency of a monopolistic firm?
The monopoly surplus graph shows that a monopolistic firm has market power, meaning it can set prices higher than in a competitive market. This leads to economic inefficiency because the firm produces less and charges higher prices, resulting in a deadweight loss for society.
How are a monopolistic firm and a competitive firm similar?
Monopoly means that there are no competitor for your product or servises
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where -?
perfectly competitive industry become a monopoly， what changes
What are the four most important ways a firm becomes a monopoly?
A firm can become a monopoly through exclusive control over a key resource, allowing it to dominate the market. It may achieve significant economies of scale, making it more cost-effective than potential competitors. Legal barriers, such as patents or government regulations, can also grant a firm monopoly power by preventing others from entering the market. Lastly, aggressive business practices, like predatory pricing, can drive competitors out, solidifying the firm's monopolistic position.
A firm can achieve equilibrium when its?
a firm can achieve equilibrium when its?
What is the position of supernormal profits for a firm that is a monopoly?
true
