Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
The answer is $7 since Marginal revenue is the change in total income from 10 customers ($400) to 11 clients ($407).
How does a monopolist decide its profit-maximizing level of yield and how does it decide the cost that it charges?
The monopolist will select the profit-maximizing level of yield where MR = MC and at that point charge the cost for that amount of yield as decided by the advertised demand curve.
If that cost is over normal taking a toll, the monopolist gains positive benefits.
How a monopolist maximizes profits?
Because Sean, a sole commercial plane administrator in a little separated town, has no competition, he has total control of showcase cost of discussing travel in his little tone Reduced cost → increment in ticket sales, Monopoly maximizes benefit by choosing a sum of benefit in which minimal income rises to minimal fetched (MR=MC). Since Sean must decrease his cost to offer more units, he has a perfective competitive company incentive to offer a little amount than a perfective competitive company.
To know more about monopoly visit:
https://brainly.com/question/13939056
#SPJ4
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.
