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Can a monopoly practice price discrimination?
The monopolist pricing condition occurs where marginal cost equals marginal revenue. The monopolist does not follow usual demand or supply curves. It instead optimises its total profit by setting its production decision (aka - how many units) to where the marginal profit of the last unit equals 0, then 'marking-up' the price by setting it directly above this equilibrium on the original demand curve. The total profit derived from this condition is called the monopolist profit.
In a pure monopoly will the seller charge more than the equilibrium price?
In a pure monopoly, the seller typically charges more than the equilibrium price that would exist in a competitive market. This is because the monopolist has market power and can set prices above marginal cost to maximize profits, leading to higher prices for consumers. Unlike in competitive markets, where prices are driven by supply and demand interactions, a monopolist restricts output to create scarcity and maintain higher prices. Thus, the price is generally above the equilibrium level found in a perfectly competitive market.
When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
Is monopoly determined by market equilibrium?
No, monopoly is not determined by market equilibrium. A monopoly exists when a single firm dominates the market for a particular good or service, often due to barriers to entry that prevent other firms from competing. In contrast, market equilibrium occurs when supply equals demand, which can happen in both competitive and monopolistic markets. While a monopolist can influence prices and output, it does not operate under the same conditions as a competitive market seeking equilibrium.
What is the condition for equilibrium in the complete circular flow model?
Leakages = Injections
How do you find a monopolist's profit maximising...?
The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.
Why there is need of second condition of equilibrium if a body satisfies first condition of equilibrium?
Consider two equal and opposite forces acting along different lines of the body, which causes the body to rotate, although first condition is fulfilled but body is still moving. Thus, we need another condition for equilibrium that is the second condition of equilibrium.
Can a monopoly practice price discrimination?
The monopolist pricing condition occurs where marginal cost equals marginal revenue. The monopolist does not follow usual demand or supply curves. It instead optimises its total profit by setting its production decision (aka - how many units) to where the marginal profit of the last unit equals 0, then 'marking-up' the price by setting it directly above this equilibrium on the original demand curve. The total profit derived from this condition is called the monopolist profit.
What is the condition that must exist in order for a body to attain equilibrium?
The equilibrium condition requires the sum of the forces on the body to be zero.
What are related words for balanced forces?
Equilibrium Condition.
What is the condition called when your equilibrium is off?
Vertigo
In a pure monopoly will the seller charge more than the equilibrium price?
In a pure monopoly, the seller typically charges more than the equilibrium price that would exist in a competitive market. This is because the monopolist has market power and can set prices above marginal cost to maximize profits, leading to higher prices for consumers. Unlike in competitive markets, where prices are driven by supply and demand interactions, a monopolist restricts output to create scarcity and maintain higher prices. Thus, the price is generally above the equilibrium level found in a perfectly competitive market.
First condition of equilibrium?
The first condition of equilibrium states that the net force acting on an object must be zero for the object to remain at rest or move at a constant velocity. This condition is also known as the vector sum of all forces being equal to zero.
What is internal equilibrium?
The internal equilibrium is a balance condition between internal forces and the commulative integrated stresses.
Explain the two conditions of equilibrium?
first condition for equilibrium is that the a body is satisfy with first condition if the resultant of all the forces acting on it is zero let n numbers of the forces F1, F2,F3,.........., Fn are acting on a body such that sigmaF=0 a book lying on a table or picture hanging on the wall are at rest and thus satisfy with first condition of equilibrium a paratrooper coming with terminal velocity also satisfies first condition of equilibrium
Type of equilibrium that occurs when allel frequencies do not change?
the type of equilibrium that occurs when an allele frequencies do not change is dynamic equilibrium :)
Will anybody be in equilibrium state when it obey 2nd condition but doesn't 1st?
No, a system cannot be in equilibrium if it does not satisfy the first condition of equilibrium, which states that the net force acting on the system must be zero. While the second condition pertains to the net torque being zero, failing to meet the first condition means that there will be an unbalanced force causing acceleration or movement. Therefore, a system must satisfy both conditions to be considered in a state of equilibrium.
