Mr=mc
they maximize profit
We can expect that prices are higher, output is less, and profits are high er.
it arise if minimum scale of a single producer is small relative to the demand for the good or service
Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation pointUnder the perfect competition sellers will reduce prices in order to sell more than their competitors.
If a company or organisation is a monopoly it has no competition. Therefore it can do anything it wishes to maximize its profit
they maximize profit
In monopolistic competition, sellers can profit from the differences between their products and other products.
Shut
We can expect that prices are higher, output is less, and profits are high er.
if the MC=Price, the firm got the maximum profit. that's what they want.
it arise if minimum scale of a single producer is small relative to the demand for the good or service
The firm is operating in Perfect markets. In perfect markets (Perfect competitions), the firm can maximize its profit when its MC is equal with its MR. And in perfect markets, usually the following condition is true: (MR = AR = P). So, in equilibrium which is also the profit maximizing point for a firm, the following condition is a must: MR = AR = P = MC.
Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation pointUnder the perfect competition sellers will reduce prices in order to sell more than their competitors.
Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation pointUnder the perfect competition sellers will reduce prices in order to sell more than their competitors.
If a company or organisation is a monopoly it has no competition. Therefore it can do anything it wishes to maximize its profit
The competition to make profit drives producers to eliminate waste.
The competition to make profit drives producers to eliminate waste.