Buy custom Compare and contrast the models of perfect competition and monopoly
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Thus at any output where marginal revenue exceeds marginal cost, profit can be increased by increasing output (Figure 1.5). At any rate where marginal cost exceeds marginal revenue, profits can be increased by decreasing output. In monopoly there is not a unique relationship between the price and the output supplied...
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At any rate where marginal cost exceeds marginal revenue, profits can be increased by decreasing output. In monopoly there is not a unique relationship between the price and the output supplied. This is because variation in marginal revenue of the monopolist accompanied by a shift in demand can result in a different output level but at the same price...
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