The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an e
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Answer:
The overview of the given statement is described in the explanation segment below.
Explanation:
<u>Monopoly Market: </u>
- The demand curve or market price towards the firm was indeed sloping downhill. MR is also below P and AR.
- Therefore, when earnings are maximized, whereby MR = MC has been used. Price is therefore above MR (Marginal Revenue).
<u>Perfectly Competitive Market: </u>
- The price shall be calculated whenever market forces are equivalent.
- The firm seems to be the fixed price and therefore the individual company market price becomes horizontal.
Thus,
⇒
Hence,
⇒