What output level and price will it choose?
2007-03-05 06:48:02 · 3 answers · asked by lint_foreman 1 in Social Science ➔ Economics
Monopolistic competitors have a degree of price control, so their marginal revenues will slope downward under their demand curve. If you are not given a formula for the marginal revenue with the demand table, assume that it slope downward about twice as fast. When marginal revenue crosses marginal cost of $8, that will be the output level it chooses, and the price corresponding to that output will be the price that is charged.
2007-03-07 06:40:24 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
the quick answer is that, if the government unearths out, they flow to reformatory, regardless of if intentional or not. interior the previous the great monopolies like usual Oil might overwhelm opposition by potential of underselling them, even at a loss, because of fact their wallet have been so deep they could handle to pay for to take action. it somewhat is why John D. Rockefeller declared opposition to be 'ruinous' and the government banned the practice. almost conversing, if there's no such intentional, decrease-throat tactic at artwork, any rational enterprise ceases production of the product in question, except they have reason to end that the placement is non everlasting, that they are in a position to incredibly undergo the fee of waiting out the industry situation that led to it, and there maintains to be sturdy reason to anticipate persevered destiny salary.
2016-10-17 08:15:39 · answer #2 · answered by ? 4 · 0⤊ 0⤋
you have to give us the demand table...
2007-03-05 08:21:58 · answer #3 · answered by a_liberal_economist 3 · 0⤊ 0⤋