A market is a place where the buyers and the sellers interact with each other and the exchange of goods and services takes place between them at a mutually agreed price level. There are many market forms based on the degree of competition in the market such as the perfect competition where the competition is the highest followed by monopolistic competition, oligopoly, and at last monopoly where there is no competition in the market for the seller. This type of market provides the seller the complete market control as well as the power to determine the profit-maximizing price and output.
The monopoly price is determined at the intersection of the MR with the MC curve and this point intersects with the demand curve of the economy. This point of intersection can be calculated by extending the MR=MC point to the demand curve as follows:
Thus, the monopoly price is $30.
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