explain the effect of applying demand theory to a monopoly market (250 words)
explain the effect of applying demand theory to a monopoly market
(250 words)
Homework Answers
A monopolist maker is the market maker and control the amount of quantity available in th market. A monopolist can raise the price of the commodity without worrying about the competetiors because he is the only seller. For maximizing his profit they have to keep his marginal cost equal to his marginal revenue. And the demand curve for monopolist is downward sloping , that means to increase its quantity he has to reduce its price. As the price fall, market's demand for commodity increases.
Elasticity of demand is defined as the responsiveness of change in demand due to change in price. Price in monopoly market is negative related to its demand.
A monopolist may choose to produce any quantity , but unlike perfectly compeptetive market , which can sell any quantity , a monpolist can sell a greater quantity only by reducing its price.
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explain the effect of applying demand theory to a monopoly
market
(250 words)
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opposites.
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firm produces in a market with ___ competitors.
Perfectly competitive and monopoly firms are complete opposites. Drag word(s) below to fill in the blank(s) in the passage....
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