Economics

Heres one IM SURE economist will enjoy... Always saying MC = MR :)
Please help... I know its something to do with Perfectly competitive firms being price takers! right??

Question:
“In both monopoly and perfect competition the profit maximizing output is at the level at which MR = MC, but only in the latter is the optimum output level such that P = MC”.

Explain the above statement by comparing the model of perfect competition with that of monopoly.


Under the monopoly, AR and MR curveds differ each other and both are falling. MR curve remains below the AR curve . So price is not equal to not equal to MC. But under Perfect Competion MR and AR are the identical . Hence the price and Mc is equal to each other.

  1. 0
  2. 0
  3. 6
asked by D
  1. Explain how demand, price elasticity and total revenue are all related to each other.please also explain this using at least two example that incorporates all three concepts

    1. 0
    2. 0
    posted by Anonymous

Respond to this Question

First Name

Your Response

Similar Questions

  1. English

    1. At school, I enjoy chatting with my close friends. 2. At school, I enjoy cleaning with other classmates. 3. At school, I enjoy playing soccer in the playground. 4. At school, I enjoy eating cookies at the school shop. 5. At

    asked by rfvv on December 1, 2012
  2. English

    1. What do you enjoy doing? 2. What do you like doing? 3. What do you like to do? 4. What do you enjoy? -I enjoy swimming. (Can all the sentences from #1 to #4 be the suitable questions for the answer?)

    asked by rfvv on November 13, 2011
  3. geography, maths liti, life sciences and economics

    Iwnt to become an economist, so Iwnt to knw that is this subject suitable for me to become an economist?

    asked by hope on April 17, 2016
  4. algebra uno help + check?

    So, I've got these other sets of problems, that are telling me to write equivilant equations for the equations given, heres what I think. 1) x+y=-10 -5+5=10 -5(2)+10 2) 5x+10y=15 5x(3)=15 5x+10=15 3)-x+2y=9 y=3(3)=9 3+6=9 Heres

    asked by Allyson on November 29, 2010
  5. calculus

    Jena. Stop it, or you will be banned. Using the chain rule, how do i solve this problem? g(x)=(sin3x)^3 g'(x)=?? 3sin(3x)^2 • 3 i think *w*w*w*.*a*s*k*.*c*o*m* hey i cant help but heres a hint just go 2 (go on the words w/ the

    asked by bobpursley on February 21, 2007
  6. statistics

    An economist wants to estimate the mean income for the first year of work for college graduates who majored in biology. How many such incomes must be found if the economist wants to be 95% confident that the sample mean is within

    asked by Panther on April 15, 2013
  7. math

    In a group of 12 chefs, all enjoy baking cakes and/or tarts. In fact, 7 enjoy baking cakes and 8 enjoy baking tarts. Find out how many chefs enjoy baking both cakes and tarts. Ans = 3, i'm having trouble figuring out how to get

    asked by Anonymous on October 21, 2018
  8. English

    1. They get out of the city and spend time in nature. 2. They go out of the city and spend time in nature. (Are both the same in meaning? Which one do you use more, go or get?) 3. Everyone will have fun there. 4. Every will have a

    asked by rfvv on April 1, 2014
  9. economics

    How do an economist as a scientist and an economist as a policy advisor help to create understanding of economics? As a scientists, we conduct experiments and do research following the scientific method. (e.g., we observe a

    asked by tracey on May 16, 2007
  10. English

    Young readers often enjoy the Nancy Drew mystery books. Is enjoy past present or future

    asked by Unknown on October 1, 2014

More Similar Questions