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In the long-run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
When can monopolist earn an economic profit?
A monopolist earns economic profit when the price charged is greater than their average total cost. To maximize profits, monopolies will produce at the output where marginal cost is equal to marginal revenue. To determine the price they will set, they choose the price on the demand curve that corresponds to this level of production.
How does a perfectly price-discriminating monopolist maximize profits by charging different prices to different customers based on their willingness to pay?
A perfectly price-discriminating monopolist maximizes profits by charging each customer the highest price they are willing to pay. This allows the monopolist to capture all of the consumer surplus and maximize revenue.
How does Marginal analysis help to maximize profits?
please answer my question i am in need of it now
What does the marginal principle of economics state?
The marginal principle will tell us that a firm will maximize it's profits by choosing a quantity at which, price=marginal costs.
In the long-run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.
When can monopolist earn an economic profit?
A monopolist earns economic profit when the price charged is greater than their average total cost. To maximize profits, monopolies will produce at the output where marginal cost is equal to marginal revenue. To determine the price they will set, they choose the price on the demand curve that corresponds to this level of production.
How is price determined in a monopoly to produce maximum profits?
In a monopoly, price is determined by the monopolist's ability to set the price above marginal cost, as there are no direct competitors. The monopolist maximizes profits by producing the quantity of output where marginal revenue equals marginal cost. This typically results in a higher price and lower quantity sold compared to a competitive market, allowing the monopolist to capture consumer surplus as profit. The price is then set on the demand curve at the quantity produced, reflecting the highest price consumers are willing to pay for that quantity.
How does a perfectly price-discriminating monopolist maximize profits by charging different prices to different customers based on their willingness to pay?
A perfectly price-discriminating monopolist maximizes profits by charging each customer the highest price they are willing to pay. This allows the monopolist to capture all of the consumer surplus and maximize revenue.
Why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist has to lower its quantity relative to the competitive market to maximize profits because the monopolist is already in control of the biggest part of the market. This means that because they're already in control, to keep the market competitive they need to release the same amount of product as their competition.
How does Marginal analysis help to maximize profits?
please answer my question i am in need of it now
What does the marginal principle of economics state?
The marginal principle will tell us that a firm will maximize it's profits by choosing a quantity at which, price=marginal costs.
Effect of a monopolist's price increase?
If a monopolist raises his prices above marginal cost, he will increase his profits. This seems like a good thing for the monopolist. However, the down side is that it reduces the well-being of consumers. Most times, the harm to consumers is greater than the gain of the monopolist.
What should the firm do if marginal revenue is greater than marginal cost?
If a firm's marginal revenue is greater than its marginal cost, it should increase production to maximize profits.
What is the significance of the price equaling marginal cost in determining the optimal level of production for a firm?
When the price equals the marginal cost, it indicates that the firm is producing at an optimal level where the cost of producing one more unit is equal to the revenue gained from selling that unit. This helps the firm maximize its profits and operate efficiently.
What are some examples of how businesses can optimize their decision-making by comparing the marginal cost and marginal benefit of producing additional units of a product?
Businesses can optimize decision-making by comparing the marginal cost and marginal benefit of producing additional units of a product. For example, they can determine the point where the cost of producing one more unit equals the benefit gained from selling that unit. This helps businesses make informed decisions on how many units to produce to maximize profits.
