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ira [324]
2 years ago
6

To maximize profit, the perfectly competitive firm charges a price equal to __________ while the monopolist charges a price ____

______.
Business
1 answer:
belka [17]2 years ago
5 0

To maximize profit, the perfectly competitive firm charges a price equal to the marginal cost while the monopolist charges a price greater than the marginal cost.

The monopolist will select the profit-maximizing level of output where MR = MC, and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.

In a monopolistically competitive market, the rule for maximizing profit is to set MR = MC and the price is higher than marginal revenue, not equal to it because the demand curve is downward sloping.

Learn more about monopolists at

brainly.com/question/13113415

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