Price under monopoly, Managerial Economics

Assignment Help:

The aim of monopolist is to maximise profit therefore; he would produce that level of output and charge that price which gives him maximum profits. He would be in equilibrium at that output and price at which his profits are the maximum. Or we can say that he will be in equilibrium position at that level of output at which marginal revenue equals marginal cost. In order to attain equilibrium, monopolist must satisfy 2 conditions:

Marginal cost must be equal to marginal revenue.

The marginal cost curve must cut marginal revenue curve


Related Discussions:- Price under monopoly

Illustrate fiscal monopoly, Q. Illustrate Fiscal Monopoly? Fiscal Mono...

Q. Illustrate Fiscal Monopoly? Fiscal Monopoly:   To stop exploitation of consumers andemployees, government nationalises many industries and obtains fiscal monopoly power ove

What is production and cost function, Q. What is Production and Cost Functi...

Q. What is Production and Cost Function? Production functions and cost functions are the keystones of managerial and business economics. A production function is a mathematical

Strategic reasons - reason for protection, Strategic Reasons For politi...

Strategic Reasons For political or strategic reasons, a country may not wish to be dependent upon imports and so may protect a home industry even if it is inefficient.  Many co

Managerial Economics, Calculate point elasticity of demand for demand funct...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

GDP, real GDP is increasingly criticized for its alleged failure to adequat...

real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?

Nash equilibria of this game, Two competing firms are each planning to intr...

Two competing firms are each planning to introduce a new product. Firm 1 will decide whether to produce product A, product B or product C, while firm 2 can choose between products

Gm04, “Managerial economics involves use of economic analysis to make busin...

“Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Explain the statement with suitable example.

The position of an economic relationship, Using the relationship among the ...

Using the relationship among the price of a visit to a physiotherapist and the quantity of visits demanded, explain and distinguish between the direction, the slope, and the positi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd