Question

Explain how will profit maximizing monopolist distribute output in different markets?
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Answer 1

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One characteristic of a monopolist is that it is a profit maximizer. Since there is no competition in a monopolistic market, a monopolist can control the price and the quantity demanded. The level of output that maximizes a monopoly's output is calculated by equating its marginal cost to its marginal revenue.

Answer 2

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One characteristic of a monopolist is that it is a profit maximizer. Since there is no competition in a monopolistic market, a monopolist can control the price and the quantity demanded. The level of output that maximizes a monopoly's output is calculated by equating its marginal cost to its marginal revenue.