Why is direct selling preferred for a monopolistic market?
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Because a good is always priced higher than its marginal cost, a monopolistically competitive market can never achieve productive or allocative efficiency. ... Because monopolistic firms set prices higher than marginal costs, consumer surplus is significantly less than it would be in aperfectly competitive market.
Hope it helps
Because a good is always priced higher than its marginal cost, a monopolistically competitive market can never achieve productive or allocative efficiency. ... Because monopolistic firms set prices higher than marginal costs, consumer surplus is significantly less than it would be in aperfectly competitive market.
Hope it helps
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