0
by eliminating competition to control prices
Hilbert Boehm
Wiki User
∙ 14y agoIn monopoly markets as there is no choice for the buyers, the pricing is decided by the Seller. As there is no competition in the market the company owns the 100% market share . There is only way to increase the profitability is to increase the market penetration. In a bid to maximize the market penetration generally companies go for price discrimination.
Wiki User
∙ 15y agoBy stoping all competition therefore being able to name its own price. Very much along the lines of present day fuel cartels.
Wiki User
∙ 14y agoby eliminating competition to control prices
Add your answer:
Earn +20 pts
In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
In the long-run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
What does a monopolist competition do to maximize its profit?
If a company or organisation is a monopoly it has no competition. Therefore it can do anything it wishes to maximize its profit
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.
The demand curve for a monopolist differs from the demand curve faced by a competitive firm?
The pure monopolist's market situation differs from that of a competitive firm in that the monopolist's demand curve is downsloping, causing the marginal-revenue curve to lie below the demand curve. Like the competitive seller, the pure monopolist will maximize profit by equating marginal revenue and marginal cost. Barriers to entry may permit a monopolist to acquire economic profit even in the long run.
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.
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.
In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
In the long-run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
What does a monopolist competition do to maximize its profit?
If a company or organisation is a monopoly it has no competition. Therefore it can do anything it wishes to maximize its profit
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.
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.
The objective of Management is to maximize profits?
It is a true statement that the objective, or goal, of management is to maximize profits. Another term for profit would be financial gain.
What are financial objectives of multinational companies?
to maximize profits for their owners.
The demand curve for a monopolist differs from the demand curve faced by a competitive firm?
The pure monopolist's market situation differs from that of a competitive firm in that the monopolist's demand curve is downsloping, causing the marginal-revenue curve to lie below the demand curve. Like the competitive seller, the pure monopolist will maximize profit by equating marginal revenue and marginal cost. Barriers to entry may permit a monopolist to acquire economic profit even in the long run.
What is the goals of a Corporation?
The goal of a corporation is to maximize profits. Furthermore, the goal of a publicly traded corporation is to maximize value for its shareholders.
Core function of an organization?
To maximize profits with limited resources at a minimum cost.
