Economy, asked by virendrachahar2578, 4 months ago

why atc is basis of pricing?

Answers

Answered by shaili0007

0

Average cost pricing forces monopolists to reduce price to where the firm's average total cost (ATC) intersects the market demand curve. The effect on the market would be: Increase production and decrease price. ... Generate a normal profit for monopolist (Price = ATC) *

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