Question

Show that under monopoly price is higher than under perfect condition

Answer 1

Answer:

Under perfect competition, demand curve is perfectly elastic. It is due to the existence of large number of firms. Price of the product is determined by the industry and each firm has to accept that price. On the other hand, under monopoly, average revenue curve slopes downward. AR and MR curves are separate from each other. Price is determined by the monopolist. It has been shown in Figure 10.

Answer 2

Answer:

999 is the best price of monopoly and also quality is there