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For a monopolist, the necessary condition for equilibrium is :
- a)P=MC
- b)P=MR=AR
- c)MR=MC
- d)None
Correct answer is option 'C'. Can you explain this answer?
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For a monopolist, the necessary condition for equilibrium is :a)P=MCb)...
“Equilibrium for the firm under perfect competition can only occur when the marginal cost of the firm is rising at or near equilibrium output.” Equilibrium under monopoly can occur whenever marginal costs are rising, falling a constant.for a monopolist, the necessary condition for equilibrium is MR=MC
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Most Upvoted Answer
For a monopolist, the necessary condition for equilibrium is :a)P=MCb)...
Explanation:
Monopoly is a market structure in which a single firm dominates the entire market by producing a unique product that has no close substitutes. In such a market structure, the firm has full control over the price of its product.
Equilibrium is a state in which the firm is maximizing its profits and there is no incentive for the firm to change its output level. For a monopolist, the necessary condition for equilibrium is:
MR=MC
where MR is the marginal revenue and MC is the marginal cost.
Marginal Revenue (MR) is the additional revenue that the firm earns by selling one more unit of its product.
Marginal Cost (MC) is the additional cost that the firm incurs by producing one more unit of its product.
At equilibrium, the firm produces the level of output at which MR=MC. This is because:
If MR>MC, the firm can increase its profits by producing and selling more units of its product.
If MR
If MR=MC, the firm is maximizing its profits and there is no incentive for the firm to change its output level.
Therefore, the necessary condition for equilibrium for a monopolist is MR=MC.
Monopoly is a market structure in which a single firm dominates the entire market by producing a unique product that has no close substitutes. In such a market structure, the firm has full control over the price of its product.
Equilibrium is a state in which the firm is maximizing its profits and there is no incentive for the firm to change its output level. For a monopolist, the necessary condition for equilibrium is:
MR=MC
where MR is the marginal revenue and MC is the marginal cost.
Marginal Revenue (MR) is the additional revenue that the firm earns by selling one more unit of its product.
Marginal Cost (MC) is the additional cost that the firm incurs by producing one more unit of its product.
At equilibrium, the firm produces the level of output at which MR=MC. This is because:
If MR>MC, the firm can increase its profits by producing and selling more units of its product.
If MR
If MR=MC, the firm is maximizing its profits and there is no incentive for the firm to change its output level.
Therefore, the necessary condition for equilibrium for a monopolist is MR=MC.
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For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer?
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For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer?.
For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For a monopolist, the necessary condition for equilibrium is :a)P=MCb)P=MR=ARc)MR=MCd)NoneCorrect answer is option 'C'. Can you explain this answer?.
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